Everyone in this chain, especially the older members, knows who Justin Sun is, and there is a strong disdain for him due to his business practices and perceived lack of integrity. Some time ago, I wrote a post expressing my concerns about how everything he touches seems to go awry, and once again, recent events have only reinforced this sentiment.
In November, HTX, the former Huobi exchange presumably owned by Justin Sun, fell victim to a hack. Thirty million dollars' worth of cryptocurrency was stolen from the exchange, and an additional 85 million dollars' worth of cryptocurrency was taken from the Heco chain, both of which are linked and likely under Justin Sun's complete ownership.
More recently, rumors have been circulating for months about something unusual happening with the reserves of Justin Sun's stablecoin, TrueUSD. Speculations suggested that he had halted the real-time attestations of its reserves and faced difficulties in collateralizing the tokens. These rumors triggered a sell-off for TUSD, causing it to depeg and experience a nearly 10% drop on some exchanges, falling to 0.9687 on Binance. The company swiftly issued a statement attributing the issue to an API error, claiming an inability to provide correct collateralization. Subsequently, reports surfaced of a spike in volumes on Poloniex, reaching 3 million per day after the depegging in late November—potentially indicative of wash trading, as the average volume for the preceding months was only 500,000 per day.
For nearly two months, TUSD has remained depegged on the Poloniex exchange, with seemingly no one attempting to arbitrage the situation. Since Monday, the depegging issue has extended to Binance.
It appears that everything Justin Sun owns is beginning to crumble around him. While the process may have been slow, there was hope that this downfall would happen sooner. However, recent developments suggest that the process has accelerated. Stay tuned, as it seems we will soon witness news of his demise.
