Dot blue letter attention, do not get lost~
Sun Yuchen, a post-90s coin circle tycoon who had photographed Buffett's lunch, suddenly rushed to Weibo's hot search on the afternoon of the 10th.
The Verge, a U.S. technology media website, broke the news that according to evidence such as the revelations of a number of former employees of Sun Yuchen's company and on-chain data, Sun Yuchen organized a market making team during the Tron period, suspected of insider trading, and evaded the IC0 ban; during bitTorrent, he made a nearly untried KYC tool to expand user trading participation; during Poloniex, he organized a team to collect small assets lost by users in the trading platform as their own, and was suspected of fraud. Money laundering through immigration or evading legal sanctions.
The Verge said that people involved in the disclosure said that the IRS and the FBI have intervened in the investigation.
Sun Yuchen responded that there were many basic factual errors in Verge's revelations. "I am Grenada's Ambassador Extraordinary and Plenipotentiary to the WTO, I do not reside in the United States, I am not an American, I do not have a U.S. green card, so I do not have any U.S. tax issues involved, and I cannot be investigated by the so-called IRS." Sun Yuchen said.
There are revelations that Sun Yuchen was investigated by the FBI
The Verge said that the IRS and the FBI have intervened in the investigation.
According to public information, Sun Yuchen graduated from the University of Pennsylvania in the United States, the founder of Trontron, the founder and CEO of the mobile social application Companion Me APP, and the founder and CEO of Rebbe. In 2014, Sun Yuchen served as the chief representative of Ripple Labs in Greater China, one of the earliest evangelists of blockchain concepts in China. It was later founded as the blockchain project "Tron TRON".
He once received widespread attention from netizens for taking a high price of $4.56 million for buffett lunch, and later announced that he canceled his lunch meeting with Buffett due to sudden kidney stones.
Sun Yuchen responded that there was no U.S. green card
According to financial tv media reports, Sun Yuchen responded that there were many basic factual errors in Verge's revelations. "I am Grenada's Ambassador Extraordinary and Plenipotentiary to the WTO, I do not reside in the United States, I am not an American, I do not have a U.S. green card, so I do not have any U.S. tax issues involved, and I cannot be investigated by the so-called IRS." Sun Yuchen said.
Sun Yuchen said that he had not received any inquiries from law enforcement agencies, and that the law enforcement information in the United States was published by law enforcement agencies and would not be entrusted to The Verge for publication. Sun Yuchen said that the report was released by competitors to create rumors to influence the company.
Subsequently, Sun Yuchen posted on his Twitter account in response to news that his suspected insider trading was being investigated by the IRS and the FBI.
Sun Yuchen said that as a SAFU exchange, Poloniex has always enjoyed a good reputation. Regarding the alleged insider trading, Sun Yuchen said: "This is a complete lie by Verge and the reporters, and a blatant slander of Poniex's operations. ”
In his response, he said he has been working hard to work with regulators and investing in state-of-the-art KYC facilities that meet industry standards. "In fact, Poloniex is not registered in Seychelles. The exchange does not operate in the United States and does not serve U.S. customers. At the same time, he mentioned that as the WTO ambassador to Grenada, he strives to uphold the highest standards in public and industry activities.
Sun said he would reserve the right to take legal remedies against false information brought by any entity and had hired Harder LLP as legal counsel.
The risk of crypto asset laundering is prominent
The underlying money laundering risks in crypto asset trading are being paid more and more attention. South Korea's Financial Supervisory Authority recently said it would strengthen its scrutiny of IPOs of emerging market companies such as NFTs and Metacosmos. The U.S. Treasury Department also issued a report specifically suggesting that NFTs may pose new risks, especially in the areas of money laundering and terrorist financing.
The U.S. Treasury Department recently released a study of money laundering and terrorist financing through art transactions, which classifies NFTs (non-homogeneous tokens) as an emerging online art market and notes that the market may introduce new risks. The report defines NFTs as digital units or tokens on the underlying blockchain that represent ownership of images, videos, audio files, and other media forms, or ownership of physical assets, digital property. The report notes that NFTs can be used for self-laundering. Criminals can buy NFTs with illegal funds and trade with themselves to create sales records on the blockchain; the NFTs will then be sold to an unsuspecting individual, who will profit from the latter's clean funds unrelated to the crime.
The report notes that it is also possible for NFT-type digital artworks to conduct peer-to-peer transactions without middlemen, and that these transactions may not be recorded on the public ledger. These digital artworks are inherently easier to trade than traditional artworks; in most cases, the parties to the transaction do not have to actually move the artwork or pay the costs associated with transportation services, such as insurance, transportation costs or tariffs; digital artwork can be transferred over the Internet without worrying about geographical distance and cross-borders. "This makes digital artworks easy to exploit by unscrupulous elements seeking money laundering, as the transfer of its value does not invite investigations by financial regulators or physical transport managers." The report said.
Blockchain analytics firm Chainalysis also noted in a recent report that wash trading in the NFT market is worth paying attention to.
A wash transaction is when an investor sells and buys the same financial instrument at the same time in order to mislead the value and liquidity of the product in the market, artificially creating a false boom in trading. "The NFT's wash-and-sell transaction is when the seller sells an NFT to a new wallet controlled by the original owner to make it appear more valuable." Chainalysis notes that historically, wash-and-sell transactions have been a means for cryptocurrency exchanges to try to make trading volumes look larger than they actually are.
Xiao Sa, a partner at Beijing Dacheng Law Firm, believes that at present, the use of virtual currency for money laundering is more common and practical, and some relatively small amounts of stolen money are more effective choices for using virtual currency to launder money or evade supervision. The use of NFTs for money laundering is much more difficult and complex, but the stolen money behind it is also more hidden and the interests involved are also greater.
"Virtual currency money laundering is like a conspiracy, while NFT and art laundering are more like conspiracies. In the process of using works of art for money laundering, the holder of the stolen money can fully participate in the whole process in a real identity, and anonymity seems to be dispensable to it, echoing the characteristics of NFT's current pseudo-anonymity. Xiao Sa said.
Editor: Ye Shujun
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