Tron’s Justin Sun Reportedly Blocked From Leaving China, Facing Accusations of Illegal Fundraising

Tron founder Justin Sun has reportedly been blocked from leaving China to attend his meeting with legendary investor Warren Buffett in San Francisco.

According to the China-based news outlet Caixin and the US-based outlet ChainDD, Sun is not currently facing any charges, but a local internet finance risks regulator is recommending Sun be investigated for illegal fundraising, money laundering, prostitution and drug-related issues.

Reports ChainDD,

“Recently, Office of the National Internet Financial Risk Rehabilitation Group has suggested that the public security organization to investigate Justin Sun’s suspicions of illegal fund-raising, money laundering, prostitution and drug-related issues.

The last trip abroad of Justin Sun was on July 1, 2019. He appeared in Taipei to attend the Asian Blockchain Summit 2019. After that, Justin Sun also had dinner with some peers.”

The accusations are reportedly related to both Tron and Justin Sun’s other business Peiwo, a messaging app that people allegedly used to offer escort services and share pornography.

Yesterday, the Tron Foundation said Sun was postponing his meeting with Buffet due to a battle with kidney stones.

TRON Foundation announces postponement of Warren Buffett lunch, press conferences after founder Justin Sun falls ill with kidney stones. Parties agreed to reschedule at a later date. @GLIDEsf @WarrenBuffett

— TRON DAO (@trondao) July 22, 2019

Sun paid $4.56 million for the lunch with Buffett in a charity auction.

He had lined up other crypto leaders to join him, including Litecoin founder Charlie Lee, Circle CEO Jeremy Allaire, eToro CEO Yoni Assia and Huobi CFO Chris Lee.

Tron (TRX) is currently down 21% on CoinMarketCap and has dropped from $0.0281 to $0.0223 at time of publishing.

Update: Sun has now responded to the accusations in a Periscope livestream from San Francisco and via his Weibo account.

“The illegal fundraising accusation is not true. After [China banned initial coin offerings], Tron complied with regulators and refunded investors on September 20th of 2017…

The Tron foundation is based in Singapore and complies with local regulations and laws… Tron does not involve any flow of capital, or any crypto or fiat currency onramp.”

 

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.