Crypto Entrepreneur and HTX Advisor Justin Sun has strongly denied rumors that its cryptocurrency positions were liquidated during the recent market turmoil.
Sun addressed the speculation in social media posts, saying Tron rarely engages in leveraged trading strategies, instead focusing on activities that support the industry, such as staking, execution of nodes and the provision of liquidity.
Sun reassured the community that recent market fluctuations are not due to negative news and urged everyone to reject fear, uncertainty and doubt (FUD). Additionally, he announced the creation of a billion-dollar fund to combat FUD, investing more and providing liquidity.
“These rumors are false,” Sun said, referring to the liquidation demands. “We should reject FUD and keep building. That’s why we’re creating a billion-dollar fund to combat FUD, invest more, and provide liquidity.
The rumors began circulating after an X account posted details suggesting that Sun’s positions had been liquidated. However, Sun quickly refuted these claims and said he was focused on sustainably supporting the industry rather than leveraged trading.
Despite Sun insurancesome members of the crypto community remain skeptical. Jeff Kirdeikis, a retired Bitcoin enthusiast, challenged Sun by tweeting: “Buy spot ($1 billion) worth of BTC, or you’re bluffing. »
The initial tweet that sparked the rumors included a screenshot purportedly showing Sun’s holdings, with the caption: “Justin Sun has finally been liquidated.” This image was originally published by decentralized analytics platform Parsec, without any reference to Sun.
Adding to the speculation, Arthur Hayes, former CEO of BitMEX, mentioned on X that his sources in traditional finance say a major player suffered heavy losses, although he did not name anyone specifically.
To add to Tron’s challenges, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Sun and the Tron Foundation in March 2023, accusing them of offering unregistered securities and engaging in manipulative business practices, which Sun has denied.
The SEC alleges that the Chinese entrepreneur and his companies conspired to distribute billions in cryptoassets and artificially inflate trading volumes in order to attract investors. The federal agency also claims that Sun manipulated the price of BitTorrent’s BTT token.