Justin Sun Faces Legal Action: Chain Plans to Sue Justin Sun

Justin Sun at Risk of Lawsuit from Chain Over Manipulation Allegations

Justin Sun at Risk of Lawsuit from Chain Over Manipulation Allegations

Tron Network founder Justin Sun faces potential legal action from blockchain startup Chain following controversial market manipulation accusations. On January 24, Justin  Sun accused Chain of engaging in activities that could harm cryptocurrency exchange users, specifically referencing the use of high leverage and contracts.

Chain Set to Sue Justin Sun Amidst Ongoing Dispute

After a heated discussion on X, Chain actually announced to sue Tron Network founder Justin Sun to engage him legally. The argument started when Justin Sun accused Chain of working in ways that threatened the well-being of users in the rival crypto exchanges. Justin Sun also demonstrated he would refer Chain to the SEC and DOJ.

Justin Sun then published on the platform X, where he tagged major exchanges, including Coinbase, Kraken, Bybit, KuCoin, and HTX Global, and asked them to investigate Chain's activities.

Chain responded by categorically denying the claims. They had not promoted any type of price action or manipulation of the XCN token. Chain went on to clarify that XCN would, under no circumstances, be handled by Chain, but rather by OnyxDAO. As part of the lawsuit being explored against Justin Sun, Chain duly reiterated their strong commitment to responsibly managing X with transparency. 

Justin Sun Calls on US Regulators to Investigate Chain 

According to his post, Justin Sun planned to inform United States regulators about the “illegal activities” of this platform. Justin Sun's statements carried even more weight when he managed to tag certain cryptocurrency exchanges. Coinbase, Kraken, and Bybit were requested by him to investigate Chain's operations and warned them to be careful regarding the potential risks associated with heavy leverage and contracts sold by Chain.

Chain, in response, made a clear, separate, distinct statement with regard to the management of the XCN token. The company asserts that they have nothing to do with the XCN Chain and there is no involvement whatsoever when it comes to trading or telling the market what to do.The company emphasized that OnyxDAO overseas XCN

Justin Sun Blames Market Manipulation as XCN Token Explodes by 400%

The situation escalated alongside a dramatic surge in XCN’s market value. The token saw a 149% price increase in a single day and nearly 400% over the course of the week. The episode exploded in scale along with the XCN-dollar token explosion on the market, whose trading volume had reached up to $75 million against BTC or $53 million against XDN by last year's end. The price increased nearly 400% in a week and even saw a 149% price surge in only 24 hours. Justin Sun’s allegations seemed to connect this price spike to possible manipulation, adding fuel to the fire.