Blockchain Protocol Chain is considering legal action against Tron founder Justin Sun following allegations of market manipulation. On January 24, Sun Chen was accused of engaging in activities that could harm users of the cryptocurrency exchange, specifically referring to the use of high leverage and contracts.
Sun posted on Platform
The chain is threatening to file a lawsuit against Justin Sun over market manipulation allegations
Yet hot Discussion about XThe chain announced its intention to take legal action against Justin Sun. The dispute began when Sun claimed that Chen’s alleged actions pose risks to cryptocurrency exchange users. He also stated that he would report Chen’s activities to the Securities and Exchange Commission and the Department of Justice.
In response, Chen strongly denied the allegations. The company clarified that it is not involved in any trading or manipulation of its XCN token. Chain also stated that XCN is managed by OnyxDAO, and not by Chain itself. The company stressed its commitment to transparency and accountability while exploring legal options against Sun.
Founded in 2014, the chain has raised more than $40 million from investors, including Pantera Capital and Citigroup. The company has seen significant developments, including its acquisition by Stellar in 2018 and its reacquisition in 2020. The chain operates in the blockchain space with a focus on developing decentralized technology.
It is worth noting that the threat of the lawsuit appeared days after Justin Sun revealed a strategy for ETH price boost to $10,000 by halting ETH sales and taxing second-tier solutions.
Sun signs on major stock exchanges and demands investigation
Justin Sun’s accusations were amplified by him tagging cryptocurrency exchanges in his post. He called on platforms like Coinbase, Kraken, and Bybit to investigate Chain’s activities. Sun warned of the alleged risks associated with the high leverage and contracts used by Chen.
The chain’s response included a clear statement distancing itself from XCN token management. The company confirmed that OnyxDAO operates XCN and denied any involvement in trading or market manipulation.
The blockchain protocol tweeted,
“The Chain Team does not actively engage in any trading of XCN, nor does it engage in any market manipulation directly or indirectly. We take these allegations seriously and are exploring legal remedies against Justin Sun.
XCN price action
This escalation occurred amid a rise in XCN’s market capitalization. The coin registered a price increase of 149% in one day and nearly 400% during the week. Sun’s claims appear to link this price movement to alleged manipulation, adding fuel to the situation.
At press time, Onyx Coin (XCN) It is trading at $0.0242, recording a 32% rise in the past 24 hours. The cryptocurrency saw an increase in trading volume, by 273% to reach $1.42 billion, along with the market capitalization that grew to $745.24 million.
Meanwhile, the Tron co-founder recently emphasized the security advantages of Wrapped Bitcoin (WBTC) compared to Coinbase Wrapped BTC (CBBTC). Justin Sun Swipe Coinbase Lack of a system for proving reserves, which highlights the risks of freezing assets.
Ronnie Mugendi
Ronnie Mugende is an experienced cryptocurrency journalist with four years of professional experience, and has contributed significantly to various media outlets on cryptocurrency trends and technologies. With more than 4,000 articles published across various media, it aims to inform, educate and introduce more people to the world of Blockchain and DeFi. Outside of his journalism career, Ronnie enjoys the thrill of riding a bike and exploring new trails and landscapes.
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