{"id":109545,"date":"2019-07-09T02:58:50","date_gmt":"2019-07-09T09:58:50","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=109545"},"modified":"2019-11-07T02:31:18","modified_gmt":"2019-11-07T02:31:18","slug":"tron-foundation-responds-ponzi-scheme-protests","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tron-foundation-responds-ponzi-scheme-protests\/","title":{"rendered":"Tron Foundation responds to Ponzi scheme-related protests at Tron partner’s offices"},"content":{"rendered":"

Videos<\/a> of protestors attempting to enter<\/a> the research and development center of a Tron<\/a> partner in China went viral. Justin Sun<\/a> responded to allegations of inaction related to the Ponzi scheme, masquerading as Tron, which originally stirred protestors into action.<\/p>\n

Protestors attempted to enter the research and development center of Raybo, a Tron partner in mainland China, on July 8. Videos of the situation quickly went viral, with some assuming the company was being investigated by police for fraudulent activity. The situation was actually related to protests against a Ponzi scheme using a Chinese name similar to Tron (\u201cWave Field Super Community\u201d in English).<\/p>\n

According to<\/a> Nuclear Finance, the scam is thought to have cost its victims around $30 million. One of the victims of the scams reportedly committed suicide.<\/p>\n

As the video circulated the situation was exaggerated<\/a> on social media, with police merely called-in to protect staff and ease tensions as protestors gathered in front of the company\u2019s building.<\/p>\n

The Tron Foundation issued an official response<\/a> to the situation:<\/p>\n

\u201cThe victims had been promised high rates of return on their investments in the name of TRON, BitTorrent and uTorrent. 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.\u201d<\/p><\/blockquote>\n

Allegedly, Justin Sun<\/a>, the founder and CEO of Tron, never denounced the fraudulent company, so investors assumed the two companies were connected and continued pouring money into the scheme. In a comment to CryptoSlate, Justin Sun places the blame for damages to Tron and others on news publications:<\/p>\n

\u201cThe very heart of TRON\u2019s mission is to promote a fair and open internet that does not stifle discussion and dissent, however I also believe there\u2019s a heightened responsibility from those disseminating news to be fair AND accurate. The twisting of events did nothing to help people who in some cases saw their life savings wiped out, while it hurt investors in the TRON community who saw the value of their holdings decline on fake news.\u201d<\/p><\/blockquote>\n

As news circulated the price of TRX dropped by 5.7 percent over the course of three hours. Following the official response from Tron the price has for the most part recovered.<\/p>\n

\"TRON
TRX\/USDT chart by TradingView<\/a><\/figcaption><\/figure>\n

Sun also issued a generic warning about companies pretending to be Tron on Jul. 1, the same day the \u201cWave Field Super Community\u201d website was shut down.<\/p>\n

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As a leading blockchain protocol, there are Ponzi schemes using #TRON<\/a>, #BitTorrent<\/a> or #uTorrent<\/a> names like \u201cMMM #bitcoin<\/a>, #Ethereum<\/a> pyramid & #EOS<\/a> ecosystem schemes\u201d. We will never ask you to send money. Be careful & hodl your $TRX<\/a>\/ $BTT<\/a><\/p>\n

— Justin Sun (@justinsuntron) July 5, 2019<\/a><\/p><\/blockquote>\n