Justin Sun has avoided the United States in recent years, both for the obvious reason and because he's a very busy man. However, since buying himself a place in Donald Trump's orbit by "investing" in World Liberty Financial, he's decided that he now has the time and the opportunity to return to US shores in his role as "Prime Minister" of Liberland. This gives the outgoing administration of Joe Biden the opportunity to do something really funny. Namely, if Sun intends to attend the swearing-in as advertised, then he'll need to be in the United States BEFORE Trump has assumed power. Imagine the unlikely scenario where Sun becomes the final high-profile arrest of the Biden administration, just moments before he believes he will escape unpunished. Now, is there any possible justification someone could find to arrest Sun? We here at Protos lack subpoena power and so can only rely on publicly reported information, but there's definitely smoke, if not fire: -
Sun is being sued by the SEC; allegedly, he directed a wash-trading scheme, sold unregistered securities, and hired shills who hawk his coins without disclosure. -
Sun is deeply connected to TrueUSD, a stablecoin that's almost certainly not solvent. -
He launches products like stUSDT and then puts them only in wallets and entities that he controls and influences, serving as key parts of the reserves for things like HTX. -
The Sun-advised (and almost certainly owned) cryptocurrency exchange HTX has shocking reserve composition, relying on tokenized BTC and staked tether products that lack any transparency and seem to be in Sun's control. -
HTX may be trying to redeem 80% of the market capitalization of the almost certainly insolvent TrueUSD. -
HTX recently redeemed WBTC that wasn't disclosed on its proof of reserves report. -
USDD, the once algorithmic stablecoin launched by Sun, removed 12,000 BTC from its collateral without approval from the DAO. -
Sun is more connected to WBTC custodian BiT Global than he has admitted publicly. Sun-advised WBTC hid its TRON product and its BTC collateral from its dashboard. -
Sun has claimed that Poloniex, a crypto exchange he owns, has issues that prevent it from completing a proof of reserves process. -
Poloniex's tokenized Bitcoin on Tron product will not disclose where the BTC is held. -
Sun has pressured at least one journalistic outlet to remove coverage of his chicanery. -
He is launching a new version of USDD with no description of where the yield is coming from and without approval from the involved DAOs. These are just the things that are known publicly, that we can all observe about him; these are the things that Trump and World Liberty Financial are happy to have on their team. A part of me is convinced that some prosecutor in EDNY or SDNY can find at least one wire fraud charge among the Justin Sun enterprises. |
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