Tron CEO Justin Sun added his voice to the growing chorus of crypto owners eyeing FTX assets after the exchange filed for bankruptcy in November 2022.
Speaking to reporters, Sun confirmed that several associates were looking into FTX’s assets, but acknowledged that an auction could take some time.
Justin Sun joins Garlinghouse to acquire assets
Justin Sun has become the second crypto CEO to stake an interest in the assets of Sam Bankman-Fried’s defunct FTX crypto empire. Before FTX filed for bankruptcy on November 11, 2022, Ripple CEO Brad Garlinghouse was interested in buying FTX’s stake in other companies and its institutional-facing business. He later acknowledged that FTX’s bankruptcy filing would complicate the acquisition process.
Ripple has also made job offers to former FTX employees, provided they do not work in compliance, finance or ethics.
Prior to filing for bankruptcy, FTX signed an agreement with Tron to help customers hold Tron tokens TRX, BTT, JST, SUN and HT in self-custody wallets.
Justin Sun has a story of his own that started in China
Sun Yuchen said that the failure of FTX would dampen crypto enthusiasm in the US.
TRON’s CEO has a storied history when he escaped China’s ban on initial coin offerings in 2017 to move to the sunny shores of San Francisco, a March 2022 piece by The Verge reports. Sun Yuchen previously held an Initial Coin Offering for TRX.
He later co-invested in a crypto exchange Poloniex, enlisting investors to buy the company from stablecoin issuer Circle.
According to The Verge, the software that holds Poloniex was unusually written. Some customers stored bitcoin in a Tether wallet, which engineers later discovered was worth about $20 million. The money was hidden in what the report called “digital cracks”. They eventually landed on a Poloniex communal wallet, The Verge reports.
While Justin Sun allegedly referred to the lost crypto as “my 300 bitcoins,” there is no evidence that the money made its way into his personal fortune, which Bloomberg reports is now $25 billion. Is.
“Converting customer funds for personal use is definitely a crime,” said UCLA professor Andrew Verstein.
Nevertheless, Justin Sun remains a controversial figure in the cryptocurrency industry. He reportedly repaired the rift between himself and the Chinese Communist Party by chairing an academic initiative on blockchain development.
At the same time, he reportedly acquired a 60% stake in Huobi, a $300 million per day crypto exchange with origins in China that lists Sun as an advisor. People familiar with the development told Bloomberg that he kept his name out of any deal to avoid being caught by the Chinese government. Suraj has denied the allegations.
Bankman-Fried seeks to bail out FTX
Former FTX CEO Sam Bankman-Fried could face criminal charges in the US after it was alleged that he loaned client funds to affiliate trading firm Alameda Research. Bankman-Fried is apparently hiding out in an affluent Bahamas neighborhood. FTX’s US bankruptcy hearing begins on November 22, 2022 in Delaware.
He is reportedly trying to raise money as a third party to bail out FTX as he is no longer the CEO of the company. After the bankruptcy filing, veteran Enron bankruptcy guru John Ray replaced Bankman-Fried.
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