In 5 months, the Tron super community swept away the amount of victims up to 1 billion, and the number of victims reached hundreds of thousands. Investors thought they had met love around the corner, but they fell into the "slaughterhouse". In China, the "roller coaster" of virtual currency has driven to the end, and those big money circles who have traveled overseas to trade to wait for a "comeback" seem to be about to completely give up the struggle.
Author | Ding Yi
Edit | Pay the shadow
Source | Unicorn Finance (ID: uni-fin)
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Sun Yuchen, the "big guy" of the currency circle marketing who has never lacked topics, has made a big "news".
According to media reports, according to the investigation of a number of former employees of Sun Yuchen's company, it was learned that Sun Yuchen was suspected of fraud, evading ICO bans, money laundering through immigration and other nearly 10 crimes during the virtual currency exchange Poloniex, and was accused of being investigated by the IRS and the FBI, which once again pushed Sun Yuchen to the cusp of the storm. Not long after, the above report was denied by Sun Yuchen.
Sun Yuchen, who is well versed in the way of hype, has targeted Luo Yonghao and Wang Sicong, canceled lunch with Buffett because of sudden kidney stones, and every time he rubbed the "celebrity" traffic, he has been on a wave of hot searches, and each hype has made an important preparation for his wealth accumulation.
There is nothing wrong with speculation, and the virtual currency business model he vigorously promotes has wandered in the gray area at the beginning, and now it is characterized by the regulator as "non-suction" behavior, suspected of violating laws and regulations, virtual currency wealth myth "cool", how long can Sun Yuchen's coin circle go?
1.
/ Mired in nearly 10 allegations, investigated by the FBI /
According to media reports, the main reason for Sun Yuchen's investigation was that Sun Yuchen organized a market-making team during the Tron period, suspected of insider trading, and fled abroad to evade China's ICO ban; in addition, Sun Yuchen also made almost untried KYC tools to expand user participation in transactions, lost small assets in mobile phone user transactions on the trading platform and took them for himself, suspected of fraud, money laundering through immigration or evasion of legal sanctions.
In response, Sun Yuchen sent 5 tweets in a row to deny TheVerge's allegations against him. Sun Yuchen said that this is a lie and a slander against his virtual currency trading platform.
At the same time, he also revealed that Poloniex is not registered in Seychelles, and the exchange does not operate in the United States and does not serve the United States. He stressed that he would reserve the right to take legal remedies against false information published by any entity.
▲Image source: Network
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, and later founded "Tron Tron".
2.
/ Crazy cutting "leeks", being scolded as "coin circle Jia Yueting" /
Sun Yuchen has been in the currency circle for many years by relying on his acting skills.
Sun Yuchen has been labeled with many labels: "Sun Cut", "The Most Cattle Post-90s", "Jack Ma's Youngest Disciple", "Marketing Ghost", "Grenada's Permanent Representative to the World Trade Organization", from the high price of Buffett's lunch to the "sudden kidney stone" as the reason for the final "soup", from hiring Luo Yonghao to repaying Wang Sicong's debts, from supporting xiaopeng car owners to protecting the rights of NetEase employees, Sun Yuchen has left his name in all corners of the Internet.
In December 2019, Sun Yuchen's Weibo was blocked, and his marketing in China also came to a temporary end, and then turned to frequent appearances around the world.
All the hype seems to be Sun Yuchen paving the way for his wealth accumulation.
In 2014, Sun Yuchen returned to China after reading Pennsylvania and founded Ruibo (Beijing) Technology Co., Ltd., engaged in the development of decentralized clearing system products, and then pioneered the concept of "sound value social" and launched the mobile social app "Accompany Me".
In 2015, Sun Yuchen announced in a high profile that he had received an acceptance letter from Lakeside University, a "non-academic entity university" founded by Ma Yun, becoming the first batch of students of the school, and for a long time since then, he has considered himself the youngest "Jack Ma disciple".
In August 2017, Sun Yuchen took his self-created virtual coin "Tron Coin" based on the virtual currency Ethereum code and went to Singapore to establish the TRON Foundation and began to officially launch the Tron project. As soon as Tron coin was issued, it immediately raised 600 million yuan, with a valuation of up to 1 billion.
On September 4, 2017, the central bank and seven other ministries and commissions issued the "94 Ban", requiring all kinds of token issuance and financing activities to be stopped immediately, and if the token issuance and financing has been completed, arrangements for withdrawal are made. However, Sun Yuchen had run overseas at this time, and in the face of the domestic ban, he strongly stated that he would not retreat, which triggered a large number of panic among tron coin buyers, and for a while, Sun Yuchen was crowned with the title of "Jia Yueting in the coin circle".
From the end of December 2017 to the beginning of January 2018, in just half a month, Tron coin rose several times, and the market price was pulled up from the original two cents to 2 yuan, soaring 100 times, and the market value of tron coin reached 14 billion US dollars, ranking among the top ten in the world in terms of market value.
Investors thought they had met love around the corner, but they fell into the "slaughterhouse".
Sun Yuchen took the opportunity to quickly sell 6 billion tron coins, cashing out 300 million US dollars, equivalent to more than 2 billion yuan (there is a saying that 12 billion yuan was cashed out), resulting in a 20% plunge in the price of tron coins the next day, and countless people instantly lost their homes.
Li Xiaolai, an early investor in yuzu coin and once the richest man in the currency circle, posted on Weibo that Sun Yuchen was a liar and that he was a well-documented habitual plagiarism offender.
In January 2019, Sun Yuchen's Tron launched the Tron Super Community function, and in the face of many fans' questions about whether it is safe or not, Sun Yuchen has not answered positively. Until 10:00 a.m. on June 30, the Tron Super Community App was closed, and the official announcement said that the platform was being optimized and upgraded, and the official customer service no longer returned investor news.
Investors later discovered that the real money and silver that had been invested in it had been adrift. In 5 months, the Tron super community swept away the amount of victims up to 1 billion, and the number of victims reached hundreds of thousands. One of them, a middle-aged woman named Xia Bing, committed suicide by cutting her wrists. In this regard, Sun Yuchen issued a statement saying that Tron does not support the capital disk, but it is not mentioned that the victim's suicide and the investor's funds cannot be withdrawn.
3.
/ "Supervision increases, the myth of coin-making wealth is shattered /
In fact, the coin circle is no longer the hot situation of the past.
In April last year, Binance, which has a good relationship with Sun Yuchen, was investigated three times in two months over money laundering and tax issues. There are many opinions on the Internet about the investigation, "Bitcoin is a pyramid scheme to ride the east wind of the Internet", "cryptocurrencies are used for money laundering" and so on continue to appear in the comment area. Behind these arguments is the distrust of users for the platform.
Recently, affected by the situation in Ukraine, the blockchain trading platform DMarket, founded in Ukraine, will freeze the accounts of Russians and Belarusians, including all their virtual currencies and other virtual assets, while explicitly prohibiting new users in these two regions from registering.
This undoubtedly negates the anonymity of virtual currencies and other virtual assets, turning the previously touted decentralization of virtual currencies into a bubble that bursts at a touch. This also sounded the alarm for domestic speculators who were lucky, and now the supervision of the currency circle in various countries is becoming stricter, and the former "myth of sudden wealth" is difficult to reproduce.
The mainland has issued a number of regulations that clearly negate the "monetary" attribute of virtual currency, and in recent years, various parts of the country have severely cracked down on virtual currency trading. On March 8, 2022, the Guangzhou Municipal Development and Reform Commission organized a "mining" on-site rectification operation, eliminating a virtual currency mine hidden in an electric vehicle charging station, and seizing more than 190 virtual currency "mining" professional mining machines, worth more than 5 million yuan.
On February 24, 2022, the Supreme People's Court issued the Decision on Amending the Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fund Raising, adding new types of illegal ways of absorbing funds such as online lending, virtual currency trading, and financial leasing, and formally defining the above acts as "non-suction" acts.
The hidden money laundering risks in crypto asset trading are also gradually attracting foreign attention. South Korea's Financial Supervisory Authority recently said it would strengthen its scrutiny of IPOs of emerging market companies such as NFTs (non-homogeneous tokens) and meta-universes. The U.S. Treasury Department also issued a report specifically suggesting that NFTs may bring new risks, especially in the areas of money laundering and terrorist financing.
In China, the "roller coaster" of virtual currency has driven to the end, and those big money circles who have traveled overseas to trade to wait for a "comeback" seem to be about to completely give up the struggle.