Bitcoin Expert Exposes Alleged Deception by Tron Founder
A detailed analysis shared on Twitter by Bitcoin expert Dylan LeClair raises serious allegations against Justin Sun, the founder of Tron. LeClair’s investigation focuses on opaque transactions involving USDT and its replacement, stUSDT, on the crypto exchange Huobi, which was acquired by Sun in 2022.
Covert Replacement of Stablecoin
LeClair highlights the covert replacement of USDT with stUSDT on Huobi, suggesting an attempt to replace a well-known stablecoin with a lesser-known counterpart. He questions the legitimacy of stUSDT’s claim to invest in real-world assets and argues that there is no evidence of such investments occurring.
LeClair cites Patrick Tan from ChainArgos, who points out similarities to previous cases where stablecoins were not used as advertised within closely associated ecosystems.
Timeline and Modus Operandi
LeClair presents a timeline showing a shift in Huobi’s reserves from USDT to stUSDT, indicating a potential modus operandi. He suggests that Huobi’s USDT is staked for stUSDT, which then moves to JustLend, a platform controlled by Sun. The USDT supposedly remains in JustLend while users end up with stUSDT instead.
Involvement of TUSD
TUSD’s involvement complicates the alleged strategy further. LeClair reveals that a large percentage of TUSD burnings can be traced back to wallets linked to Sun. He questions the supposed cash backing behind TUSD and its investment in Treasury bills.
Binance’s Role
LeClair also brings Binance into the spotlight, suggesting suspicious actions related to TUSD. He mentions the timing of large mints of TUSD sent directly to Binance during a period of zero fee trading.
A Stark Warning
LeClair concludes by urging Huobi users to withdraw from USDT and switch to another asset. He accuses Sun of creating a web of deception and asserts that he is a fraud.
Hot Take: Allegations of Deception and Fraud Surrounding Justin Sun
In a detailed analysis, Bitcoin expert Dylan LeClair exposes what he believes to be a web of deception orchestrated by Tron founder Justin Sun. LeClair’s investigation uncovers opaque transactions involving USDT and stUSDT on Huobi, suggesting an attempt to replace a well-known stablecoin with a lesser-known counterpart. He questions the legitimacy of stUSDT’s investment claims and presents evidence of suspicious transaction patterns involving TUSD. LeClair also raises concerns about Binance’s involvement. With a stark warning to Huobi users, LeClair asserts that Sun is creating a web of deception to siphon USD liquidity out of the crypto ecosystem.
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