Justin Sun Speaks Up After TRON, TUSD Drop Due To Terror Financing Allegations

Justin Sun, founder of the Tron (TRX) blockchain, immediately came to the network's defense following a report alleging that it is being used to finance terrorist activities and organizations and causing the value of TRON and TUSD, which are crypto assets associated with the network, to drop.

After gaining a whopping 13% last week, TRON, the native cryptocurrency of the network of the same name, fell by 3% and traded at $0.1042 Tuesday.

TrueUSD (TUSD), the stablecoin of the network, also de-pegged on the same day despite gaining recognition in the crypto market, courtesy of Sun's previous $800 million minting stint.

Sun immediately released a statement defending his crypto businesses afterward.

"TRON is a decentralized protocol, similar to Bitcoin and Ethereum, with nodes operating worldwide. Global super representatives are responsible for running this protocol," the 33-year-old crypto entrepreneur said.

Aside from explaining the core philosophy of Tron's decentralized structure and not denying the accusations made against the network, Sun said, "While we are committed to combating terrorist financing by integrating various analysis projects and partners, our top priority remains maintaining decentralization, ensuring the safety of everyone's assets and providing instant, affordable and reliable transactions, as has always been the case."

The Tron Foundation founder also shared his appreciation for everyone in the broader cryptocurrency industry who helped with its adoption.

"I extend great appreciation to everyone in our industry who is contributing to the widespread adoption of cryptocurrency," Sun noted.

Tron is a blockchain network that has gained traction over the years because of its low transaction fee and user-friendly protocol. It currently has over 198 million addresses, mostly made of Central Asia and Middle East users.

Reuters reported on Monday that Tron has become increasingly popular among terror groups based on the significant increase in the number of Tron wallets seized since 2021.

Aside from calling Tron a new front in "Israel's militant financing fight," the publication also said that because it is "quicker and cheaper than its larger rival Bitcoin, Tron has overtaken its rival as a platform for crypto transfers associated with groups designated as terror organizations by Israel, the United States and other countries," citing "seven financial crime experts and blockchain investigations specialists" as sources of its claims.

The Israel Bureau for Counter Terror Financing (NBCTF) reportedly seized and froze 143 Tron wallets between July 2021 and October 2023 that were believed to be associated with a "designated terrorist organization" or used for a "severe terror crime."