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Tron Foundation responds to Ponzi scheme-related protests at Tron partner’s offices

Tron Foundation responds to Ponzi scheme-related protests at Tron partner’s offices

Videos of protestors attempting to enter the research and development center of a Tron partner in China went viral. Justin Sun responded to allegations of inaction related to the Ponzi scheme, masquerading as Tron, which originally stirred protestors into action.

Protestors attempted to enter the research and development center of Raybo, a Tron partner in mainland China, on July 8. Videos of the situation quickly went viral, with some assuming the company was being investigated by police for fraudulent activity. The situation was actually related to protests against a Ponzi scheme using a Chinese name similar to Tron (“Wave Field Super Community” in English).

According to Nuclear Finance, the scam is thought to have cost its victims around $30 million. One of the victims of the scams reportedly committed suicide.

As the video circulated the situation was exaggerated on social media, with police merely called-in to protect staff and ease tensions as protestors gathered in front of the company’s building.

The Tron Foundation issued an official response to the situation:

“The victims had been promised high rates of return on their investments in the name of TRON, BitTorrent and uTorrent. TRON officials expressed their sympathy and understanding for those who had been deceived, however, the company strongly condemns acts of violence that may be perpetrated as a result of events that are not in its direct control.”

Allegedly, Justin Sun, the founder and CEO of Tron, never denounced the fraudulent company, so investors assumed the two companies were connected and continued pouring money into the scheme. In a comment to CryptoSlate, Justin Sun places the blame for damages to Tron and others on news publications:

“The very heart of TRON’s mission is to promote a fair and open internet that does not stifle discussion and dissent, however I also believe there’s a heightened responsibility from those disseminating news to be fair AND accurate. The twisting of events did nothing to help people who in some cases saw their life savings wiped out, while it hurt investors in the TRON community who saw the value of their holdings decline on fake news.”

As news circulated the price of TRX dropped by 5.7 percent over the course of three hours. Following the official response from Tron the price has for the most part recovered.

TRON USDT (TRX/USDT) price chart by TradingView
TRX/USDT chart by TradingView

Sun also issued a generic warning about companies pretending to be Tron on Jul. 1, the same day the “Wave Field Super Community” website was shut down.

After first hearing of Wave Field Super Community, Raybo reportedly communicated with the company, seeking a cease and desist from acting in Tron’s name and reported the company to local law enforcement.

The Tron Foundation denies there was inaction on part of the organization:

“TRON has on multiple occasions warned investors of potential pyramid schemes or illegal activities that attempt to defraud investors under the guise of fast riches using blockchain technology. In regards to reports of TRON’s inaction specifically regarding the Wave Field Super Community scam, in January after learning of the Wave Field Super Community and that it had been attracting investors in the name of TRON, TRON warned investors on its WeChat messaging group, Wei Bo official channels—Wei Bo and Dou Yin, etc.—to beware of potentially fraudulent schemes.”

TRON | TRX

Updated: Jul 9 at 3:03 am PDT
$0.04
0.98%

TRON, currently ranked #10 by market cap, is up 0.98% over the past 24 hours. TRX has a market cap of $2.34B with a 24 hour volume of $898.2M.

Chart by CryptoCompare

TRON is up 0.98% over the past 24 hours.

Filed Under: , Price Watch, Scams, Tron
Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

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