Tron Foundation responds to Ponzi scheme-related protests at Tron partner’s offices ๐จ This article is 5 years old...
News โธ China โธ TRON โธ Price Watch
Tron Foundation responds to Ponzi scheme-related protests at Tron partner’s offices
3 min read
Updated: Nov. 7, 2019 at 2:31 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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 (โWave Field Super Communityโ 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 companyโs building.
The Tron Foundation issued an official response to the situation:
โThe 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.โ
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:
โThe very heart of TRONโs mission is to promote a fair and open internet that does not stifle discussion and dissent, however I also believe thereโs 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.โ
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.
Sun also issued a generic warning about companies pretending to be Tron on Jul. 1, the same day the โWave Field Super Communityโ website was shut down.
As a leading blockchain protocol, there are Ponzi schemes using #TRON, #BitTorrent or #uTorrent names like โMMM #bitcoin, #Ethereum pyramid & #EOS ecosystem schemesโ. We will never ask you to send money. Be careful & hodl your $TRX/ $BTT
— Justin Sun (@justinsuntron) July 5, 2019
After first hearing of Wave Field Super Community, Raybo reportedly communicated with the company, seeking a cease and desist from acting in Tronโs name and reported the company to local law enforcement.
The Tron Foundation denies there was inaction on part of the organization:
โTRON 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 TRONโs 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 channelsโWei Bo and Dou Yin, etc.โto beware of potentially fraudulent schemes.โ
TRON Market Data
At the time of press 2:31 am UTC on Nov. 7, 2019, TRON is ranked #10 by market cap and the price is up 0.98% over the past 24 hours. TRON has a market capitalization of $2.34 billion with a 24-hour trading volume of $898.2 million. Learn more about TRON ›
Crypto Market Summary
At the time of press 2:31 am UTC on Nov. 7, 2019, the total crypto market is valued at at $351.61 billion with a 24-hour volume of $80.64 billion. Bitcoin dominance is currently at 64.09%. Learn more about the crypto market ›
Mentioned in this article
Latest China Stories
Latest TRON Stories
You might also enjoy...
In this article
BitTorrent
$0.00076
Founded with a leading peer-to-peer sharing technology standard in 2004, BitTorrent, Inc.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.