- Justin Sun gives a thorough response to the Verge.
- The CEO tackles rumors questioning his exchanges’ and crypto ventures.
- Crypto exchanges still not catching a break from regulatory bodies.
Recent allegations directed to Justin Sun have been debunked. In a series of tweets posted today, Justin Sun —Founder of Tron network — has responded to the Verge’s claims that he was being investigated by the FBI, as well as the US SEC.
Sun Sets The Records Straight about Poloniex
“Initial response to the false accusations and fabricated storytelling of the Verge article.” He said, in his first tweet. He proceeds to explain that Poloniex has prioritized security and lived up to its status as a “SAFU” exchange for the past 8 years.
(1/5) @Poloniex has always enjoyed a sterling reputation from its origin as a SAFU exchange. We have upheld the highest standard in safeguarding crypto assets for our clients with a proven track record without any major security breach in operation in the last 8 years.
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) March 9, 2022
Sun continues to say that the exchange is committed to complying with regulators, and also adopting the KYC facilities for its customers. The Tron creator notes that Poloniex is not registered in Seychelles, and does not operate in the US, nor does it serve US customers.
He concludes by revealing his legal standing on the issue.
(5/5) As the WTO Amb. of Grenada, I strive to uphold the highest standard over my endeavors in both public and industry domains. We reserve the right to pursue legal remedies against the falsehoods brought on by any entities. We are represented by Harder LLP as our legal counsel.
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) March 9, 2022
Crypto Exchanges and their many pushbacks in recent times
The article also added that Poloniex was a risky place to trade crypto assets. It added that Sun escaped Beijing to Seoul to avoid the ICO ban that could affect the TRX token.
As these allegations surface, it adds to the already existing pushbacks that crypto exchanges have been facing over the years.
In previous times, exchanges like Binance were plagued by regulatory pullbacks. Many of the aforementioned exchanges, along with a handful of others had to relocate to crypto-friendly areas, in order to keep business moving.
Asides from the regulatory drama, exchanges also suffered multiple hacks within that time period. The largest so far was from 2018, when hackers stole a whopping $534 million from Coincheck.
Meanwhile, in recent times, some of the leading exchanges have been running into the SEC’s bad books. Last year, Binance received multiple sanctions and was forced to shut down in Singapore, and Israel. Last year, the SEC also threatened to sue the US-based exchange Coinbase.
Source: ZyCrypto
