Justin Sun Faces Potential Lawsuit From Chain Over Manipulation Allegations

Blockchain protocol Chain is weighing authorized motion in opposition to TRON founder Justin Solar following allegations of market manipulation. On January 24, Solar accused Chain of participating in actions that would hurt cryptocurrency trade customers, particularly referencing the usage of excessive leverage and contracts.

Solar posted on the platform X (previously Twitter), tagging main exchanges equivalent to Coinbase, Kraken, Bybit, KuCoin, and HTX World, urging them to analyze Chain’s actions.

Chain Threatens Lawsuit In opposition to Justin Solar Over Market Manipulation Claims

Following a heated discussion on X, Chain introduced its intent to pursue authorized motion in opposition to Justin Solar. The dispute started when Solar claimed that Chain’s alleged actions posed dangers to crypto trade customers. He additionally acknowledged he would report Chain’s actions to the SEC and DOJ.

In response, Chain firmly denied the allegations. The corporate clarified that it isn’t concerned in any buying and selling or manipulation of its XCN token. Chain additionally acknowledged that XCN is managed by OnyxDAO, not by Chain itself. The corporate emphasised its dedication to transparency and accountability whereas exploring authorized choices in opposition to Solar.

Based in 2014, Chain has raised over $40 million from buyers, together with Pantera Capital and Citigroup. The corporate has undergone important developments, together with its acquisition by Stellar in 2018 and re-acquisition in 2020. Chain operates within the blockchain area with a deal with advancing decentralized know-how.

Notably, the lawsuit menace emerged days after Justin Solar revealed a technique to boost ETH price to $10,000 by halting ETH gross sales and taxing Layer 2 options.

Solar Tags Main Exchanges and Calls for Investigation

Justin Solar’s accusations have been amplified by tagging cryptocurrency exchanges in his submit. He known as on platforms like Coinbase, Kraken, and Bybit to analyze Chain’s actions. Solar warned of the alleged dangers related to excessive leverage and contracts utilized by Chain.

Chain’s response included a transparent assertion disassociating itself from the administration of the XCN token. The corporate reiterated that OnyxDAO manages XCN and denied any involvement in buying and selling or market manipulation.

The blockchain protocol tweeted,

“The Chain crew just isn’t actively engaged in any buying and selling of XCN, nor concerned in any market manipulation straight or not directly. We take these allegations extraordinarily significantly and are exploring authorized cures in opposition to Justin Solar.”

XCN Value Motion

This escalation occurred amidst a surge in XCN’s market worth. The token recorded a 149% worth enhance in at some point and almost 400% over the week. Solar’s claims appeared to hyperlink this worth motion to alleged manipulation, additional intensifying the state of affairs.

At press time, Onyxcoin (XCN) is buying and selling at $0.0242, marking an increase of 32% over the previous 24 hours. The cryptocurrency has seen a rise in buying and selling quantity, up 273% to $1.42 billion, alongside a market capitalization that has grown to $745.24 million.

In the meantime, the Tron co-founder not too long ago emphasised the safety benefits of Wrapped Bitcoin (WBTC) over Coinbase Wrapped BTC (CBBTC). Justin Solar critiqued Coinbase’s lack of a Proof of Reserves system, highlighting the danger of asset freezing.