YEREVAN (CoinChapter.com) — Tron Founder Justin Sun could be the next target from the Department of Justice’s (DOJ) list of alleged fraudulent crypto bosses to be booked. Earlier this week, Changpeng Zhao (CZ), the CEO of Binance, stepped down from his position. His company shelled out $4.3 billion in a deal with law enforcement authorities.
Now, the crypto community is predicting that Sun’s days are numbered.
Will “His Excellency” Justin Sun Go to Jail?
Social media platforms have several posts discussing the faith of the “former diplomat”.
In 2021, the Government of Grenada appointed Sun as its ambassador to the World Trade Organization (WTO). However, he lost his status in June 2023 after a national election saw the National Democratic Congress sweep its way to power. It replaced the New National Party, which granted the Tron founder his diplomatic status. However, he hasn’t stopped calling himself “His Excellency”.
One Reddit user predicted Sun will not be around by the next crypto bull run.
“Here it is, Justin Sun is next!… He is a controversial and polarizing figure, often accused of plagiarism, fraud, market manipulation, and regulatory evasion... has been sued by the US Securities and Exchange Commission for selling unregistered securities and engaging in wash trading. He has also been involved in several scandals…”the post opined.
But the discussion isn’t limited to Reddit. On X (formerly Twitter), several industry insiders are making similar predictions.
Calvin Ayre, the founder of global venture capital firm Ayre Group and crypto platform CoinGeek, made similar assertions. According to him, Zhao’s arrest has set the stage for Sun and “all the rest of them” to face the music.
The Fall of Do Kwon, Sam Bankman-Fried, and Changpeng Zhao
Since 2022, the crypto industry has seen at least three mega-crypto entrepreneurs fall from grace.
South Korean entrepreneur Do Kwon, who co-founded Terraform Labs in 2018 and developed the cryptocurrencies TerraUSD and Luna, led the pack.
The crash of the Terra ecosystem immediately wiped out $40 billion from the market. Its aftereffects saw an additional $500 billion get swept away, bankrupting others. After several attempts to flee, authorities arrested him in Montenegro. He was traveling with fake Costa Rican travel documents.
Then came Sam Bankman-Fried, the generous 31-year-old crypto billionaire. His rise to fame through his exchange, FTX, and his trading firm, Alameda Research, is perhaps the biggest scam in crypto history.
Once valued at $32 billion, his exchange collapsed after failing to meet withdrawal requests, leading to a liquidity crisis. Subsequent investigations revealed that he had illegally funded customer funds and spent billions on himself, his friends, and his family.
Moreover, he used FTX funds to finance political campaigns, including through donations to US President Joe Biden.
Last month, after weeks of trial, the jury found him guilty of all charges against him.
Even before Bankman-Fried’s trial began, people had predicted the fall of Changpeng Zhao. It eventually came this week. Besides getting booted out from the top post in Binance, CZ may also spend up to 18 months in prison.
Is Justin Sun next on the Department of Justice list?
Now, it is Justin Sun’s turn to pay his dues. According to Discover Crypto founder and host Joshua Jake, his questionable past makes him an easy target.
In March this year, the Securities and Exchange Commission (SEC) charged Justin Sun with fraud and market manipulation. Gary Gensler, the chairman of the SEC, accused him of “coordinating wash trading on an unregistered trading platform” to create botched-up TRX data.
In January, he had already faced accusations of organizing rug pulls. Some alleged he scammed employees at Huobi, the crypto exchange where he serves as an advisor. Reports speculate that he indirectly owns a majority share at the exchange. He has since denied being its owner.
By July, fresh reports emerged that accused him of market manipulation. To say that he has a questionable track record, would be an understatement.
As the US law enforcement authorities ramp their crackdown, Justin Sun could be next. If the Department of Justice goes after him, the price of TRX, Tron’s native token, will go tanking.