Justin Sun Accused of Manipulating BTC Price
Date: 2024-01-25 Author: Dima Zakharov Categories: IN WORLD
The Bitcoin Cartel Allegations
WhaleWire has raised eyebrows by claiming that Justin Sun is involved in manipulating the price of Bitcoin. According to their findings, Sun is acquiring Bitcoins using Tether (USDT) stablecoins freshly minted within the Tron network. These stablecoins are coins put up for sale due to capital outflows from cryptocurrency exchange-traded funds (ETFs).
The authors at WhaleWire have coined the term "Bitcoin cartel" to describe Sun and other manipulators who clandestinely influence the behavior of the most capitalized cryptocurrency. They believe that members of this cartel are concerned about the outflow of funds from the Bitcoin ETF market. The Grayscale Bitcoin Trust (GBTC) has been particularly scrutinized in this regard.
Capital Flows and Suspicions
Previously, it was reported that the failing crypto exchange FTX had sold $1 billion worth of GBTC shares in November 2022. Bloomberg analyst James Seiffart suggests that DCG, a prominent company, might also be behind the capital outflow from the fund.
WhaleWire's team noticed that $647.1 million worth of Tether stablecoins were minted on the Tron network on the same day as the outflow from GBTC. According to their investigation, these funds were sent to Justin Sun.
Sun's Admission
Notably, Justin Sun openly admits to purchasing Bitcoins that have been released from the Grayscale fund. However, WhaleWire's team considers Sun's actions as blatant fraud.
"They don't even bother hiding the fraud anymore because they know regulators are asleep, and short-sighted Bitcoin investors will turn a blind eye," the authors claim.
Thus, Justin Sun's alleged actions may be influencing the Bitcoin price, turning it into an artificial construct.
History of Manipulation
This is not the first time Justin Sun has been accused of market manipulation. In July 2023, he was suspected of secretly buying TUSD stablecoins, and in December 2023, his actions affected SHIB investors.
It's worth noting that Sun is also believed to be the owner of the popular cryptocurrency exchange Huobi, which faced significant issues in 2023.
