Chain Responds to Justin Sun’s Accusations with Potential Lawsuit

A new dispute has emerged in the cryptocurrency world as Chain considers taking legal action against Justin Sun, the founder of TRON, over accusations of market manipulation.

Sun stirred the pot on January 24 by accusing Chain of engaging in practices that could potentially harm users on various cryptocurrency exchanges. His claims were based on concerns about the use of high leverage and trading contracts, which he suggested were risky.

In his post on X (formerly Twitter), Sun tagged leading exchanges such as Coinbase, Kraken, and Bybit, calling on them to investigate Chain’s activities. This prompted a strong response from Chain, which firmly rejected the allegations, clarifying that it does not control or trade its XCN token, which is instead managed by OnyxDAO. Chain also took the opportunity to announce that it was exploring legal action against Sun for these accusations, highlighting the serious nature of the claims.

This altercation comes shortly after Sun made additional waves with remarks about XCN’s recent market performance, which saw a dramatic surge in value. The token experienced a massive 149% jump in a single day, and nearly 400% over the week. Some have speculated that this increase was tied to the controversy surrounding Sun’s statements, which may have added fuel to the fire. At the time of writing, XCN’s price had risen to $0.0242, with a notable 273% increase in trading volume, signaling heightened market activity.

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Alongside this drama, Sun has also been vocal about other issues in the crypto space, such as security concerns regarding Wrapped Bitcoin (WBTC). He recently criticized Coinbase’s Wrapped Bitcoin offering for lacking a Proof of Reserves system, suggesting it could potentially freeze assets, and underscored the importance of security in the crypto market. This ongoing back-and-forth between major figures highlights the tense and volatile nature of the crypto industry.

Alexander Stefanov