A recent report that the cryptocurrency project Tron had been linked to a billion-dollar Ponzi scheme in China and dire consequences. Protestors, and more than a few victims of the scheme, decided to take out their frustrations on a Tron office in the city of Beijing before police had to be called in to try to restore order. The Ponzi scheme reportedly cost investors a total of $30 million and led to at least one suicide, which may have prompted the attack.
According to a report by a Chinese news outlet, “At 10:00 am on June 30, the Wave Field Super Community App closed and it was suspected that [Wave’s owners] had already [run away]. Wallet assets have been transferred out two weeks ago, and investors are currently unable to withdraw cash. Then, on July 1, a middle-aged woman’s suicide note signed by ‘Xia Bing’ and her ‘cutting the wrist to commit suicide’ photos were circulated in many WeChat groups, becoming a public opinion starter for this fund collapse.”
It appears that Wave may have been nothing more than a hacker-led initiative the entire time, but this has yet to be proven. The site convinced investors to send Tron (TRX) to invest in its platform and “billions” of yuan were reportedly sent. When Tron’s name is written in Chinese, it looks very similar to the name the thieves used, an intentional ploy to take advantage of Tron’s status.
Tron CEO Justin Sun had cautioned about the site in Twitter post on July 5, stating, “As a leading blockchain protocol, there are Ponzi schemes using #TRON, #BitTorrent or #uTorrent names like “MMM #bitcoin, #Ethereum pyramid & #EOS ecosystem schemes.” We will never ask you to send money. Be careful & hodl your $TRX/ $BTT.” However, by this point, it was already too late.
After the attack on the Tron office, Tron issued a formal statement, saying, “Tron officials expressed their sympathy and understanding for those who had been deceived, however, the company strongly condemns acts of violence that may be perpetrated as a result of events that are not in its direct control.”
Sun added, “I was happy to see many calls for the truth behind the unfortunate events which unfolded in our partner offices today. I believe in having honest, candid discussions on any medium, and yet the twisting of events and rush to judgment did nothing to help investors who were defrauded, while it hurt investors in the Tron community who saw the value of the holdings decline on fake news.“
There is no word yet on whether or not any of the scammers has been arrested.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.
To receive the latest CoinGeek.com news, special discounts on CoinGeek Conferences and other inside information direct to your inbox, please sign up for our mailing list.