Tron replies to the Ponzi scheme accusation

July 9, 2019 | AtoZ MarketsFollowing the recent raids of Beijing police in Tron offices the blockchain company, has replied to the Ponzi scheme accusation. An official note to the protest against the Ponzi scheme that went under a Tron-like name was released on July 8 by Tron Foundation.

Recalling the history of the Tron’s accusations

The disputes in media started when highly active Journalist, Hayden Otto posted a short video on Twitter that displays the Beijing police raid on offices of Raybo technology — a partner firm of Tron. Different publications reported then, that police arrived due to outraged protestors swarming Beijing R&D departments of Raybo because of a local crypto scam operating under a Tron-like name.

Local media reported that the aforementioned fraud led to $30 million worth of losses and one suicide. Eventually, the police contained and subsequently removed the protestors. 

It was not the first time when scammers integrated crypto trading-related activity into their Ponzi scheme. Earlier, US authorities arrested the leader of another cryptocurrency Ponzi called Onecoin.

In May 2019, the U.S. Securities and Exchange Commission (SEC) obtained an Order from the U.S. District Court targeting a $30 million Ponzi scheme which allegedly involved the crypto company in South Florida, and its leader. 

Tron sends an official note to the victims of Tron-like scammer

According to Chinese website Nuclear Finance, a pyramid-like investment scheme known as the “Wave Field Super Community” has been associated with Tron. In China, Tron and its TRX cryptocurrency is known as “Wave Field.”

The report mirrors the official reply from Tron to the crypto community and Ponzi scheme accusations.

In its statement, the blockchain company said that it has reached out to the protesters and discovered that some people were defrauded by the aforementioned “Wave Field Super Community” scheme.

The scam traded on its similarity to the Chinese-language version of Tron’s name. It promised potential investors high return rates on their investments on behalf of Tron, BitTorrent, and uTorrent. In its reply, Tron officials expressed their sympathy and understanding for those who had been deceived. 

In addition, the blockchain company strongly condemned acts of violence that may be perpetrated as a result of events that are not in its direct control.

Tron further explained that their partner, Raybo has already communicated with Wave Field Super Community, and asked the firm to cease and desist from acting in Tron’s name, and reported the firm to authorities.

In his interview with one of the media outlets, Tron’s founder Justin Sun said that he believes in having honest candid discussions on any medium.

However, as the company CEO added, “rush to judgment did nothing to help investors who were defrauded, while it hurt investors in the Tron community who saw the value of the holdings decline on fake news.”

TRX price outlook 

Yesterday, the crypto market opened with a bullish trend. Most of the cryptos in the market were climbing upwards on the chart. Tron also started the week with the bullish trend by breaking the weekly records.

However, the intraday profit booked by the coin significantly dropped after a police raid in Tron offices. In the last 1 Week, the price has moved by $ 0.001990 (6.25%) with a total volume of over $ 2.85 M.

The highest price of the coin $ 0.03580 was on 08 July 2019 at 12:00 GMT, while the lowest price, $ 0.03036, was on 02 July 2019 at 14:00 GMT. Tron is currently trading at $0.034 according to data from CoinMarketCap.

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