Chain Prepares Legal Action Against TRON Founder Justin Sun

• The chain has denied market manipulation allegations and is exploring legal action against Justin Sun for his claims.
• The XCN token saw a 149% daily and 400% weekly surge, prompting scrutiny and manipulation accusations from Justin Sun.
• Justin Sun has urged investigations into Chain’s practices while also facing criticism for his Ethereum and Wrapped Bitcoin strategies.

Blockchain protocol Chain has initiated legal proceedings against Justin Sun, the founder of TRON, following accusations of market manipulation. The developments emerged after Sun accused Chain of activities he claimed could harm cryptocurrency exchange users, focusing on issues such as high leverage and contracts.

Chain’s Legal Action Against Justin Sun

Chain officials disclosed their intention to take legal action through statements on the X platform. The announcement followed allegations from Sun that Chain’s practices endangered cryptocurrency exchange users. He called for Chain’s activities to be examined by the SEC and DOJ, urging exchanges like Coinbase, Kraken, KuCoin, Bybit, and HTX Global to investigate Chain’s operations.

In response, Chain denied involvement in market manipulation, stating that the XCN token is managed by OnyxDAO and not influenced by Chain’s activities. The company emphasized its transparency and commitment to legal compliance, reaffirming that it is exploring legal remedies against Sun’s claims.

Market Developments and Allegations of Manipulation

The legal dispute coincides with a sharp increase in the value of the XCN token, which surged by 149% in a single day and nearly 400% over a week. Justin Sun linked the sudden price spike to potential manipulation. Chain officials rejected these allegations, asserting their non-involvement in XCN’s trading or price movements.

Founded in 2014, Chain has raised substantial capital from investors such as Pantera Capital and Citigroup. After its acquisition by Stellar in 2018, the company restructured in 2020 to develop decentralized blockchain technology.
Justin Sun recently announced measures to impact Ethereum’s market dynamics, including halting ETH sales and taxing Layer 2 solutions. He also criticized Coinbase for lacking a reserve-proof system. Additionally, Sun’s association with Wrapped Bitcoin led Coinbase to delist the token due to perceived risks.