Video footage shows a number of Chinese citizens have gathered at Tron’s Beijing offices with security guards standing by the inner entrance.
This does not appear to be a raid, but an eruption of anger due to Justin Sun, Tron’s founder, not distancing himself from an obvious ponzi scheme that used Tron’s name.
Tron is known as Wave Field in China with a scam called Wave Field Super Community closing down on June 30th, leading to the loss of about $30 million from “several hundred thousands” of investors according to local media.
This theft further led to the suicide of one woman who had invested about $7,000 worth of TRX borrowed from a friend at high interest.
About 1 billion TRX, worth circa $30 million, was moved from the scammers address two weeks ago in addition to about 35 million BitTorrent tokens (BTT) worth just $48,000.
This was a literal scam in that it promised 1% in interest every day with the ponzi scheme claiming they were a project by uTorrent which they said is a Super Representative of Tron.
They claimed they needed their own channels to absorb funds, promising returns based on staking on Tron as a super node with the scammer stating the more little nodes join by investing, the more the super node gets.
Their complaint against Tron appears to be limited to the fact Justin Sun did not clarify whether there was any relationship with this literal scam.
He did later make a statement on Chinese social media, but the victims complain that was far too late.
This comes at a pretty bad timing for Tron which was hoping to ride high on the back of a testnet launch for BTFS (BitTorrent File System), an offshoot of IPFS, and the launch of BitTorrent Speed tomorrow.
It’s not clear how the market will react, however, with it arguably not Tron’s or Justin Sun’s responsibility to police outright ponzi schemes.