Crypto Authority, a Twitter handle, has reported that the Tron offices in Beijing are surrounded by hundreds of protesters who are protesting against a Ponzi scheme that has a similar name to Tron and took millions from unsuspecting investors. It is reported that the alleged scam took almost $30 million from local people and also lead to a suicide.
CEO of Tron, Justin Sun has labeled the videos as “fake news” and has denied any protests or involvement of police outside Tron offices. Following the videos of the incident going viral, he tweeted:
Tron Foundation and BitTorrent are fine. Everything is fine. We are preparing for BitTorrentSpeed launch today. Stop spreading fake news and pictures.
Tron offices had to call the police to calm these protesters down as they were getting out of hand. Videos of protesters surrounding the Tron headquarters are being circulated all over the internet.
Police raid #TRON office in Beijing
There’s a Chinese Ponzi Scheme that went by a very similar name to TRON in Chinese and even went as far to claim associations with them too.
Last week they closed and took $30-million with them + 1 suicide of a victim of the scam. https://t.co/WPKUaALexm
— ⚡Crypto Authority⚡ (@CryptoAuthorit) July 8, 2019
The videos show that people are protesting against Tron calling it a fraudulent entity. They are holding banners saying “Tron is a scam” while also raising slogans against the company.
— Hayden Otto (@haydenotto_) July 8, 2019
As can be seen in the videos, people are apparently considering Tron to be the fraudulent entity.
Sun has already distanced himself and Tron from such scams. He had already warned investors about these scams saying that these scams are using Tron’s name and Tron has no involvement with them whatsoever. He tweeted on 5th July, saying:
As a leading blockchain protocol, there are Ponzi schemes using TRON, BitTorrent or uTorrent names like “MMM bitcoin, Ethereum pyramid & EOS ecosystem schemes. We will never ask you to send money. Be careful & hold your TRX/ BTT
The Alleged Ties to Tron:
The scam that took more than $30 million from novice investors was being operated under that name of “Wave Field Super Community”. As Tron in China is known as “Wave Field”, many unsuspecting local investors bought into the name.
Nuclear Finance, a Chinese finance news agency, reported that the “Wave Field Super Community” launched in January and claimed to be a representative of Tron. Many investors claim that they had asked the company about their involvement; however, Sun didn’t respond to their questions until now.
The affected people are angry about Tron’s silence about the scam that was operating under the same name. Their anger has sparked these protests that Tron still asserts never happened.
Senior Market Analyst at eToro, a social trading marketplace, Mati Greenspan in his tweet has said that the police were there to protect Tron officials from the angry mob of investors and that the police were not there to raid Tron offices due to their suspected involvement in the scam. He tweeted:
A lot of misinformation floating around, so to clarify. The Tron office wasn’t raided by the cops. Tron was the one who called the police to protect them from investors who are upset that Tron scammed them.
Tron’s CEO Sun has found some support online as many crypto investors and influencers are tweeting in his favor. One such tweet came from the co-founder of IAmDecentralized, Misha Lederman, who tweeted:
It’s the responsibility of investors to Do Your Own Research (DYOR) In a decentralized world & network, it’s not the sole responsibility of the protocol itself (#TRON #ETH #EOS) to alert on any or all scams That said, we need to find innovative ways to mitigate scammers’ success