Crypto entrepreneur and HTX advisor Justin Sun has firmly denied rumors that his cryptocurrency positions were liquidated during recent market turbulence.
Sun addressed the speculation in social media posts, claiming that Tron rarely engages in leveraged trading strategies, focusing instead on activities that support the industry, such as staking, running nodes, and providing liquidity.
Sun reassured the community that the recent market fluctuations are not due to negative news and urged everyone to reject fear, uncertainty, and doubt (FUD). Additionally, he announced the creation of a $1 billion fund to combat FUD, investing more, and providing liquidity.
“These rumors are false,” Sun stated, referring to the liquidation claims. “We should reject FUD and keep building. That’s why we’re creating a $1 billion fund to combat FUD, invest more, and provide liquidity.”
The rumors began circulating after an X account posted details suggesting Sun’s positions had been liquidated. However, Sun quickly refuted these claims and said that his focus is on sustainable industry support rather than leveraged trading.
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Despite Sun’s reassurances, some in the crypto community remain skeptical. Jeff Kirdeikis, a retired Bitcoin enthusiast, challenged Sun, tweeting, “Spot buy [$1 billion worth of] BTC, or you’re bluffing.”
The initial tweet that sparked the rumors included a screenshot allegedly showing Sun’s holdings, with the caption, “Justin Sun finally got liquidated.” This image was originally posted by the decentralized analytics platform Parsec, with no reference to Sun.
Adding to the speculation, Arthur Hayes, former CEO of BitMEX, mentioned on X that his sources in traditional finance say a major player suffered heavy losses, though he did not name anyone specifically.
Adding to Tron’s challenges, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Sun and the Tron Foundation in March 2023, accusing them of offering unregistered securities and engaging in manipulative trading practices, which Sun has denied.
The SEC alleges that the Chinese entrepreneur and his companies conspired to distribute billions of cryptoassets and artificially inflate trade volumes in order to lure in investors. The federal agency also claims that Sun manipulated the price of BitTorrent’s BTT token.
