• CoinStic
  • Posts
  • Tron Responds to Allegations of Fraud, Protest, Police and a Multi-Million Dollar Scam

Tron Responds to Allegations of Fraud, Protest, Police and a Multi-Million Dollar Scam

July 08, 2019

The Tron Foundation says leaders of the multi-million dollar scam that is being blamed for at least one suicide and the loss of $30 million in Tron’s native cryptocurrency (TRX) by innocent victims were issued a cease and desist letter to prevent the fraudsters from fleecing the community.

In a response issued on Monday, Tron made clear that it used its WeChat messaging group to warn Tron investors that a group called the “Wave Field Super Community” was posing as Tron to attract investors.

According to a report by local Chinese news site Nuclear Finance,

“At 10:00 am on June 30, the Wave Field Super Community App closed and it was suspected that it had already run. Wallet assets have been transferred out two weeks ago, and investors are currently unable to withdraw cash.”

Tron is known by the name “Wave Field” in China and victims claim that neither Tron nor CEO Justin Sun did enough to distance itself from the criminals who were running a Ponzi scheme which promised investors a huge return on their TRX. The Wave Field Super Community allegedly “launched” in January and claimed to be one of Tron’s 27 super representatives that powers the Tron blockchain.

Tron reports,

“The victims had been promised high rates of return on their investments in the name of TRON, BitTorrent and uTorrent.”

According to Nuclear Finance, victims said questions directed at Sun asking for clarity about Tron’s relationship to the group went unanswered, allowing the scammers to fool Tron supporters and make off with millions in crypto. They claim that a clear response was not published until after the fund came crashing down and the fraudsters had disappeared.

While Tron expressed sympathy towards the victims, it also chides “a number of people” who tried to enter the office of Beijing research and development center of Raybo technology, a partner of Tron in mainland China.

https://twitter.com/haydenotto_/status/1148174472899264514

Reports on social media are characterizing the police presence as a raid, however, Tron reports that the police responded to the protestors.

“Pictures and video circulating on the internet show scenes of the incident and the police response that removed them and secured the office.”

…

“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. 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.”

Says Tron and BitTorrent CEO Justin Sun,

“Tron partner office operating normally after Wave Field Community protesters disrupt morning operations, resulting in police presence. Continued sympathy for those defrauded; working with police to try to help.”

You can check out Tron’s full response here.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.