Allegations Arise of Liquidation of Justin Sun’s Leveraged Trades Due to Bitcoin Crash

Blockchain innovator and HTX consultant Justin Sun has categorically refuted the circulating whispers that his digital currency holdings faced liquidation amidst the recent market volatility.

In responses broadcasted on various social platforms, Sun clarified that Tron is not habituated to leveraging debt for trading but leans towards industry-strengthening activities such as staking, operating nodes, and enhancing liquidity.

Sun comforted his followers by confirming that the market’s ups and downs are unrelated to adverse happenings, and he called on the community to stand firm against the spread of fear, uncertainty, and doubt (FUD). He also disclosed his decision to set up a $1 billion fund directed at combating FUD, making further investments, and ensuring liquidity supply.

“The gossip about liquidation is baseless,” Sun affirmed. “We need to confront FUD and persist in our development endeavors. To that end, we have planned a $1 billion fund to tackle FUD head-on, amplify our investments, and bolster liquidity support.”

The genesis of these liquidation rumors was traced to an update from an X account which proposed that Sun had had his positions liquidated. Refuting these assertions, Sun maintained his stance on endorsing a healthy industry through sustained contributions rather than speculative leveraged trades.

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Even with Sun’s statements, skepticism persists among certain circles within the cryptocurrency sphere. This included comments from Jeff Kirdeikis, a Bitcoin enthusiast now inactive, who confronted Sun with a tweet that said, “Spot buy [$1 billion worth of] BTC, or it’s just a bluff.”

An initial tweet that set off these rumors showed an image presumed to display Sun’s funds, tagged with, “Justin Sun has ultimately been liquidated.” Parsec, a decentralized intelligence interface, shared this image without direct association to Sun.

In addition, Arthur Hayes, ex-chief of BitMEX, hinted in an X post that his connections in the finance sector point to notable losses incurred by an influential entity, yet he stopped short of identifying anyone in particular.

Complicating matters for Tron, the U.S. Securities and Exchange Commission (SEC) launched legal proceedings against Sun and the Tron Foundation in March 2023, alleging the offering of unauthorized securities and conducting trade manipulation, which Sun has consistently repudiated.

The SEC’s legal action suggests that the Chinese mogul and his business entities collaborated in disseminating massive amounts of crypto holdings and manipulating trading volumes artificially to bait investors. The SEC further attributes price manipulation of the BitTorrent (BTT) tokens to Sun.