A millionaire born in 1990 publicly claims to want to be the 'Elon Musk of cryptocurrency,' asserting that Warren Buffett has 'made a mistake' by avoiding Bitcoin.
There is a lot of controversy surrounding this young millionaire.
The latest ally of President-elect Donald Trump in the cryptocurrency market is a Chinese-American entrepreneur. Recently, this man has also been accused of fraud by U.S. regulators and is the same mogul who spent $6.2 million to buy... a banana.
Justin Sun (1990), founder of the Tron blockchain, invested $30 million in the cryptocurrency project backed by the Trump family called World Liberty Financial in November. Notably, Sun pumped money into the project just as it seemed to struggle to meet its fundraising goals, jeopardizing potential payments to the Trump family. Sun currently serves as an advisor to World Liberty.
There are many troubles surrounding Sun. The U.S. Securities and Exchange Commission sued Sun and three of his businesses in 2023. The agency accused Sun of selling unregistered securities, manipulating token prices, and paying Lindsay Lohan and several other celebrities to promote his plans.
Notably, over the past 7 years, Sun has continuously engaged in murky activities in the cryptocurrency world. Price volatility and major scandals may have caused some contemporaries to leave, but Sun remains undeterred by past controversies and legal battles.
Just days before investing in World Liberty, Sun spent over $6 million at a Sotheby's auction for an artwork that included a banana taped to a white wall. Afterwards, he held a press conference to showcase himself eating that banana.
To attract attention, Sun said: "I want to become the Elon Musk of the cryptocurrency world. Although it may sound crazy or excessive to some, I ultimately think that much of what we do will yield great results."
According to Dennis Kelleher, CEO of Better Markets, a group advocating for tighter financial oversight, Sun's investment in World Liberty seems to be an effort to court the incoming Trump administration. "But this is a very serious lawsuit," he said. These allegations "are not something that even the new SEC chair could easily dismiss."
A spokesperson for Tron stated that they "strongly oppose these allegations and any wrongdoing." Sun's companies have sought to dismiss the lawsuit.
A spokesperson for Tron stated that they "strongly oppose these allegations and any wrongdoing." Sun's companies have sought to dismiss the lawsuit.
Sun stated that he decided to invest in World Liberty after seeing Trump and his sons Eric and Donald Jr. promoting their interest in "combining cryptocurrency and traditional finance." The sale of World Liberty tokens is not just about bringing digital assets into the mainstream.
According to sources, the organization owned by the Trump family will earn 75% of the net revenue if the project raises $30 million.
By mid-November, World Liberty had raised about $20 million. Then, Sun joined in, investing $30 million to ensure that the Trump family would receive their payments. "I always wanted more people to get involved in the cryptocurrency industry," Sun said. A spokesperson indicated that Sun's investment decisions are not politically motivated.
Sun came to the U.S. in 2011 to pursue a master's degree at the University of Pennsylvania. He became fascinated with Elon Musk and Tesla. And during the law school entrance exam, he learned about bitcoin and was drawn into cryptocurrency - which later helped change the direction of Sun's career.
Sun launched the Tron blockchain in 2017 as a faster and cheaper alternative to Ethereum, and sold $70 million worth of Tron TRX tokens before China declared this fundraising method illegal and issued a ban. In 2018, Ethereum co-founder Vitalik Buterin accused Sun of copying his white paper.
Tron has also become a popular destination for transactions using tether, the largest stablecoin in the world.
According to cryptocurrency analysis firm TRM Labs, nearly half of the illegal cryptocurrency volume occurred on the Tron blockchain last year. Tron is currently collaborating with TRM to detect illegal activities and has helped freeze about $70 million in assets this year. As a blockchain, Tron does not assess user intent, a spokesperson for Sun stated.
Since then, Sun has expanded his operations into a network of companies and attracted attention in every possible way.
In 2021, Sun took the title of 'Sir' after winning the right to appoint a representative for Grenada at the World Trade Organization, although this Caribbean nation later revoked Sun's position.
Sun paid $28 million for a front-row seat on a space tourism rocket developed by Jeff Bezos's Blue Origin. However, he did not make the trip, citing scheduling conflicts.
When Sam Bankman-Fried's cryptocurrency empire FTX collapsed in 2022, Sun gathered reporters in Singapore to announce that he would consider buying some of the exchange's assets. However, no deal was made afterwards.
Fearing Sun's influence, Coinbase, the largest cryptocurrency exchange in the U.S., delisted a token issued by BiT Global this month, citing 'unacceptable risks' that the coin would fall into Sun's hands. BiT, which Sun advised, has sued Coinbase over its decision. A spokesperson for Sun stated that the delisting "is not even evidence of any wrongdoing" by Sun.
Sun even attempted to argue about cryptocurrencies with one of the market's critics, Warren Buffett. In 2019, Sun offered $4.6 million for the opportunity to have dinner with the chairman of Berkshire Hathaway.
However, Sun postponed the last-minute meeting and later changed the location. By the time the meeting was rescheduled, Sun apologized for "over-promoting himself" and "tending to exaggerate matters." For his part, Buffett still steers clear of bitcoin.
But recently Sun asserted: "I think Warren Buffett made a mistake."
Source: WSJ