Chain, a blockchain company founded in 2014, is considering legal action against Justin Sun, a founder of the TRON blockchain platform.
In the post on January 20, Sun accused Chain of manipulating the market, claiming they are using “high leverage and risky contracts” that could harm users on exchanges.
Sun Accused Chain
Sun accused Chain, Source: X
Sun has not given specifics about the alleged manipulation; he warned crypto exchanges like Coinbase, Kraken, and Bybit to be cautious. He said he would report their illegal activities to the Securities and Exchange Commission and the Department of Justice for further investigation.
Chain responded and denied the allegations of Sun. The company said they are not involved in “ANY trading of XCN, nor involved in ANY market manipulation directly or indirectly.”
Chain’s Denial, Source: X
The company also explained that OnyxDAO managed the XCN token and announced that it would take legal action against Sun over his claims.
XCN, or Onyxcoin, is the decentralized governance and utility token of the Onyx ecosystem. Holders can use it for transactions, staking, governance, and paying for services on Onyx and Chain.com.
Again, Justin Sun has posted, tagging OnyxDAO and urging the SEC and DOJ to investigate. However, Justin Sun has taken down both the post of allegation from the X. His allegation came just after the XCN token’s price jumped by 149% in one day and nearly 400% in a week. At the time of writing, XCN is trading at $0.02439.
Chain has raised over $40 million from investors like Khosla Ventures, Pantera Capital, Capital One, Citigroup, Fiserv, Nasdaq, Orange, and Visa. In 2018, Stellar acquired Chain to create Interstellar, a commercial arm of the Stellar Foundation. Chain was reacquired in 2020.