SEC's new crypto suit alleges market manipulating wash trading

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Justin Sun, creator of the Tron blockchain, is one of the best known and least credible major characters in the cryptocurrency industry. And now he has a new facet to his notoriety: allegations of market manipulation by the U.S. SEC.

is when an asset is traded back and forth in a market to make it look like there's demand, when really it's one person — or colluding people — just sending the asset back and forth.Unregulated exchanges have little incentive to police wash trading, as the transactions earn trading fees, like any other trades.

In one report from 2018, the SEC quotes one of Sun's employee's writing, “The boss reminded us of the need to increase trade volume, we need to increase the liquid parameter next week, concentrate on binance, bittrex, bithumb, upbit exhanges."the budget for wash trading at that time was 2.5 BTC per day, or roughly $16,000 per day, at October 2018 prices.

"During the 249 days when those accounts were active, Sun’s team engaged in at least 609,790 wash trades of TRX, averaging about 2,449 wash trades per day," the complaint alleges, referring to the blockchain's core token.it meticulously details how Sun and his team were unambiguous in marketing TRX to the public in a way that created an expectation of profit.

That's a key point in establishing that a financial instrument constitutes a security under the SEC's authority.If there's one thing Sun and his team are known for, it's marketing. He has a gift for drawing attention to himself and his projects.to make inappropriate endorsements of the blockchain.Sun and Tron's controversial historyof lifting text and key concepts from the language and materials used by other projects.

Tron uses a delegated proof-of-stake consensus model, one that's proved susceptible to power concentration on other blockchains.to serve as one of the leading nodes almost immediately when he announced his candidacy.

 

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Tron Founder Justin Sun Sued by U.S. SEC on Securities, Market Manipulation ChargesJUST IN: The SECgov is suing justinsuntron on fraud and market manipulation charges, and alleging that TRX and BTT are unregistered securities. nikhileshde reports SECGov justinsuntron nikhileshde The SEC is nothing but state sanctioned extortion. SECGov justinsuntron nikhileshde News manipulation. Give the people a strong reason to sell. SECGov justinsuntron nikhileshde It’s about time they sued that XRP fraud, Brad Garlicbread
Source: CoinDesk - 🏆 291. / 63 Read more »