SEC Tells Telegram Its Crypto Is Worth Less Than Donuts

On Jan. 27., the Securities and Exchange Commission (SEC) fortified its case against Telegram, saying its Gram token is worth less than donuts. 

The SEC’s counter

In the latest in their battle with Telegram and the Telegram Open Network (TON), the SEC argued in a memo to the Southern District Court of New York:

“Telegram offered and sold Grams as securities when it promised to deliver them in exchange for funds pursuant to the Purchase Agreements. That reality will not have changed if the Court permits Telegram to deliver Grams to the Initial Purchasers as part of a broad public distribution, which is in violation of Section 5, and which the Court should enjoin”.

In the memo, the SEC included a few barbs against the instant messenger service. It called out Telegram for doing “a two-step around the registration provisions” and performing “sleight of hand” by fabricating the difference between a purchaser’s investment in Grams and their delivery of the Grams, which would allow them to withhold info normally in regulatory statements. Pavel Durov’s creation, the document contends, gave a “strawman” argument about “existence” since “Grams will never be tangible.” The SEC put the frosting on when it wrote: 

“Telegram’s attempt to avoid this economic truth by labelling Grams ‘commodities’ also fails. Grams are not commodities. Unlike gold, comic books, and Krispy Kreme donuts —  commodities Telegram compares to Grams — Grams have no intrinsic value.”


Cointelegraph reported on the start of Telegram’s legal woes last year, when the SEC filed an emergency action to freeze the company’s sale of Gram tokens.

Per the allegations, Telegram would have sold Grams only to accredited investors in the initial offering. But holders could then have resold them — a violation of Rule 506(c) according to the SEC: 

“Once Telegram delivers the Grams to the Initial Purchasers, they will be able to resell billions of Grams on the open market to the investing public. Telegram and/or its affiliates will facilitate these sales on digital-asset trading platforms. Once these resales occur, Telegram will have completed its unregistered offering with billions of Grams trading on multiple platforms to a dispersed group of investors.”

Source Cointelegraph

Binance’s US Trading Platform to Introduce Staking Rewards

Binance.US, the U.S. cryptocurrency trading platform of major crypto exchange Binance, will introduce stacking rewards in February.

According to an announcement published by Binance.US on Jan. 29, staking rewards will be made available for Algorand (ALGO) and COSMOS (ATOM) starting next month.

Staking support for more coins to come

Furthermore, the exchange announced plans to add other Proof-of-Stake (PoS) coins later. The announcement explains that an easy way to access staking “allows more people to earn rewards for contributing to the network by promoting network security, reducing validation costs.”

Furthermore, Binance.US claims to be the first United States marketplace to offer staking rewards for users’ ATOM and ALGO holdings. The firm’s CEO Catherine Coley said:

“Staking is just one of the many attractive ways we are bringing new people into the digital asset marketplace. We consider this another step towards achieving our goal of financial inclusion for an ever-growing pool of people.”

Staking centralization?

The announcement follows the launch of a dedicated staking platform by Binance’s principal cryptocurrency trading platform at the end of September 2019. Staking is an activity possible on PoS-based blockchains that allows the network’s nodes to validate blocks by holding cryptocurrency as collateral.

While in the case of Bitcoin (BTC), a 51% attack requires a barrage of processing power, in the case of a PoS blockchain, a 51% attack requires the attacker to hold a great number of the coin that they are attacking. As Cointelegraph recently reported, Bitcoin Gold’s (BTG) blockchain suffered a 51% attack resulting in over $70,000 worth of BTG being double-spent.

The initiative, often referred to as staking-as-a-service, attracted some criticism from the cryptocurrency community. Dovey Wan — founding partner of blockchain-based investment company Primitive Ventures — has commented at the time of the announcement:

“That’s why RIP for all StakingaaS Exchanges gonna eat it, custodial wallets gonna eat it, even PoW pool gonna eat it, and then the remaining is a race to the bottom Bad business, just bad.”

Source Cointelegraph

Cardano Inches Toward Smart Contract Implementation with New Paper

Cardano (ADA) revealed a new paper on Jan. 27 in which the firm details how smart contracts will be implemented in the upcoming Goguen update. Though the system is unique, its release date is still uncertain in light of Cardano’s history of delays.

How EUTXO works

The Extended UTXO model was specifically designed as an improvement on Bitcoin’s (BTC) pure UTXO architecture. In Bitcoin, each transaction is based on the concept of outputs and inputs, representations of specific amounts of BTC. A specific transaction simply takes some Bitcoin in the form of inputs and reshapes them into different outputs. Similar to changing a bill into lower denominations, the number of resulting outputs or their specific amounts are not important, as long as their total value is equal to that of the inputs. The correctness of the transactions is ensured by cryptographic validators that, in Bitcoin’s case, leverage the user’s private key to create a verifiable signature.

The researchers explained that, even though this model “plays well with the concurrent and distributed nature of blockchains,” it presents severe limitations to programmability — making it impractical for most smart contracts.

By contrast, Ethereum’s (ETH) account-based ledger allows for complex computations, but it has to introduce a “shared state” — the collective memory of all transactions and contracts. Cardano’s researchers believe that this model is difficult to secure effectively due to complicated code semantics, which results in incidents such as the DAO hack.

To enable more powerful smart contracts in the UTXO model, the researchers introduced mechanisms that can split the execution of a smart contract into multiple transactions.

In Cardano’s model, each transaction output will also have a data field, which can contain arbitrary information connected to a particular smart contract. In addition, the system ensures that a particular chain of outputs uses the same contract code — a concept called contract continuity.

The result is a state machine similar to Ethereum’s, where each state change is divided into specific transactions.

Long development cycles

Cardano’s development is divided into several “eras” named after famous artists and philosophers, each with their own specific focus.

The current Shelley era focuses on staking, having launched the feature on Cardano’s testnet in December.

The next era is Goguen, which focuses on smart contracts. While the two are largely simultaneous, Cardano’s official roadmap places the latter’s completion in Q1 2020. Indeed, all remaining phases are set to be completed by the end of 2020.

But the project is not new to delays. IOHK CEO Charles Hoskinson promised in an April 2019 interview that both Shelley and Goguen would be released by the end of the year on mainnet.

A testing platform for Plutus, Cardano’s smart contract language that uses EUTXO, was available since December 2018. The Jan. 2020 paper is just the formalization of the model that underpins Plutus.

Nevertheless, the release dates of both Shelley and Goguen remain uncertain. In a Jan. 27 community update, Hoskinson revealed that the team is still working on improving the Shelley testnet, with a mainnet release planned no sooner than February.

He also revealed that IOHK is taking measures to improve the accuracy of its timeline estimates.

Source Cointelegraph

Cardano Breaks 6-Month Slump, Signaling Potential Altcoin Revival

Today Cardano (ADA) broke above its 6-month range and now follows the movements of large-cap altcoins like Bitcoin Cash ABC (BCH), Dash (DASH) and Ethereum Classic (ETC). Does this mean that altcoins are entirely out of the woods? 

Crypto market daily performance. Source: Coin360

ADA/BTC breaks above its 6-month trading range

Over the past 6 months, Cardano has traded in a sideways accumulation range between 0.000004-0.0000044 satoshis, while the resistance was found at 0.00000535-0.00000545 satoshis.

ADA BTC 12-hour chart. Source: TradingView

The 12-hour chart shows that the breakout occurred with a significant amount of trading volume which was the highest measured volume candle since the start of this range. 

Such a candle is a strong signal, as the price of an altcoin needs to bottom out in a sideways structure, called the accumulation range. Breaking out of this range with such a high amount of buying pressure is usually a sign that the accumulation phase has ended.

At the moment there is not 100% confirmation of a breakout, but the chart suggests that further upside continuation could occur. For confirmation to occur, Cardano price needs to retest the previous resistance for support to see whether buyers are stepping in at these prices. If that occurs, continuation towards 0.00000645 satoshis and possibly higher is likely to occur. 

ADA/USDT pair mirrors the ADA/BTC pair

ADA USDT 12-hour chart. Source: TradingView

The USDT chart of Cardano also provides a similar bullish outlook. The price broke a 6-month downtrend, which was followed by a strong surge of 38% (from $0.038 to $0.053). This breakout marked the end of the downward trend and the start of a new uptrend. 

An upward trend usually signals positive support/resistance flips, which the chart clearly shows. The price rejected at $0.045 earlier this month, after which support was found at $0.039, then the rally continued.

ADA broke this $0.045 resistance yesterday and immediately followed its path towards the next resistance at $0.053. Currently, Cardano is hovering around this next level of resistance. Traders now believe that a healthy retest of $0.045-0.047 should occur before continuation towards $0.064 can take place. 

Altcoin market capitalization approaches a crucial resistance 

Altcoin market capitalization cryptocurrency chart. Source: TradingView

The altcoin market capitalization of cryptocurrencies is showing a potential bottom formation and uptrend since the start of 2020. An apparent breakthrough of the $65 billion resistance resulted in an upward trend towards $80 billion. This resistance confirmed resistance, after which the market capitalization needed to retest some support levels. This support is found at $72 billion. 

An interesting fact from this chart is the significance of the $80 billion level. The level has been tested several times in recent months, which means that a renewed test of this level usually follows a breakthrough. Targets are found at $100 and $113 billion as next resistances. 

A breakthrough of this level would result in a surge of altcoin dominance. Thus, an analysis of the Bitcoin (BTC) dominance (or altcoin dominance) is, therefore, also warranted. 

Bitcoin dominance on the verge of a significant drop

Bitcoin dominance 1-day chart. Source: TradingView

The daily Bitcoin dominance chart is currently hovering below the 67.50-68% level. This level used to be a significant “support” during 2019. After several tests of this level, the dominance fell below this level and might be continuing the dropdown. 

The more critical signal from this chart is the lower high at 70.75%. Bitcoin dominance was unable to continue rallying at 70.75% and turned downwards, which could signal a potential downtrend for the Bitcoin dominance. 

For now, the eyes are on this 68% level. If the dominance chart breaks back above this level, a continuation of the Bitcoin dominance is likely to occur, which would result in pain for the average altcoin investor.

ETH/BTC pair breaks a two-year-old downtrend

ETH BTC 1-day chart. Source: TradingView

The primary variable for a potential drop of the Bitcoin dominance is Ether (ETH), so analyzing this cryptocurrency is essential to get a clear view. At the moment Ether is showing bullish signals, as it finally broke a two-year-old downtrend. 

This raises the following question:  

Do investors need to see a significant surge immediately after breaking out of such a long term downtrend? 

The answer is no, as some consolidation is quite likely before a larger surge occurs. 

ETH BTC daily chart. Source: TradingView

The ETH/BTC daily chart is showing a clear uptrend, as a higher low was made earlier this month at 0.017 satoshis. Right now a significant support/resistance flip is occurring as well. If the price of Ether can hold above 0.0186 satoshis, a surge towards 0.022 and 0.025 satoshis is something traders will keep an eye out for. 

Holding above 0.0186 satoshis would confirm an uptrend and flip that resistance for support. Automatically, such a surge would cause Bitcoin dominance to drop significantly. 

EOS breaks its 5-month range

EOS BTC daily chart. Source: TradingView

Cardano wasn’t the only altcoin to break out of a significant sideways range. The same sort of price action can also be viewed with EOS. 

EOS price hovered in a sideways range for five months, after which an apparent breakthrough happened earlier this month. Such a breakthrough is quite often followed by a retest of the previous resistance and this took place over the past few weeks, further confirming the breakout as buyers stepped in at this level.

As long as the green zone around 0.0004 satoshis holds as support, continuation towards 0.0005 and 0.00068 satoshis is likely to occur. 

If one thing is clear, it is that altcoins are showing stronger signals of a potential trend reversal. However, the primary variable is still Bitcoin. When Bitcoin price revs up and catches momentum, altcoins usually tend to break downwards in their BTC pairings. 

However, given that many altcoins have broken their multi-year downtrends, it’s likely to expect further momentum to the upside. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source Cointelegraph

IBM Secures Patent for ‘Self-Aware Token’ to Record Events of Offline Transactions

Tech giant IBM has been awarded a patent for the development of a “self-aware token” designed to record events of an offline transaction.

A patent document filed with the United States Patent and Trademark Office describes a system, which relates to financial data processing in an electronic currency platform, as well as to processing e-commerce tokens, which have involved offline transactions. To track and record events of offline transactions, the system incorporates a so-called “self-aware token.”

Tracking and validating offline transactions

The document further draws a link between the system and a platform for tracking and validating e-currency tokens IBM described in a patent application back in July 2012. That platform was set to provide a lifetime tracking of a token, real-time transaction support, secure authentication and validation services.

Getting back to the “self-aware token,” the document detailed:

“In the event a user of the platform makes an off-line transaction involving a token from the platform then a system is needed to allow a token to re-appear on-line at a later time and continue to be authenticated, validated, and rated by the platform. It is believed such a system would constitute a significant improvement to the art of financial data processing.”

The impetus behind the invention purportedly lies in the idea that the adoption of new forms of currency will create questions regarding the ability to validate, authenticate and coordinate transactions across diverse forms of payment and trade that traditionally had little or no interaction.

New token standards

Last November, the Token Taxonomy Initiative (TTI) unveiled a framework to standardize the construction of tokens. The TTI’s members include major tech, financial, software and blockchain firms like IBM, Microsoft, Intel, ConsenSys, EY, R3 and JPMorgan. 

Microsoft’s blockchain-enabled cloud service Microsoft Azure also announced new tokenization and blockchain data management services. The service aims to simplify the definition, creation and management of compliant tokens built to industry standards.

Source Cointelegraph

Nimbus Receives Ethereum Foundation Grant to Work on Light 2.0 Client

The Ethereum Foundation awarded a $650,000 grant to Nimbus for continuing its work on light Ethereum 2.0 clients, a Jan. 28 press release announced. The project’s goal is to allow smartphones and embedded devices to run smart contract-capable nodes.

Nimbus is an infrastructure project launched in March 2018 by Status. While initially conceived as a way to ensure access to the Status app on all smartphones, its scope was later expanded into a public good for Ethereum. As Jacek Sieka, Head of Research at Nimbus, told Cointelegraph:

“The R&D performed by the Nimbus team is not specific to Status or The Status Network, but rather designed as a public good for anyone to use, change, and benefit from.”

Nimbus is co-funded by Status, the Ethereum Foundation and, in small amounts, by Gitcoin. The foundation has committed a total of $1.65 million so far.

These funds will be used to get Nimbus into a production-ready state, as the next milestones will involve the testing and eventual release of a client supporting Ethereum’s beacon chain.

What is Nimbus?

Like existing Ethereum (ETH) clients such as Mist and Parity, Nimbus will allow users to connect to the upcoming Ethereum Serenity network.

Its primary distinction is its planned support for devices other than computers or servers. The Ethereum blockchain is currently too resource-taxing to be executed on a smartphone. Any phone-based wallet needs to connect to an external node, an arrangement dubbed Simplified Payment Verification (SPV). 

As Sieka explained, Nimbus will allow weaker devices to fully connect to the network:

“The way we are building and designing Nimbus lends itself to more than an SPV wallet replacement. It will have the capabilities of processing and managing any type of smart contract transaction, not only wallet functions.“

Devices that will be able to support Ethereum nodes also include the Raspberry Pi, point of sale units and other embedded devices. As people in the developing world do not always have access to the latest hardware, Nimbus will purportedly “democratize blockchain use around the world and provide the technology to people who need it most,” added Sieka.

Given that the project relies on Ethereum 2.0 development, further slips in its roadmap would also affect Nimbus. Sieka considers the relationship with Serenity as symbiotic, with its roadmap helping “coordinate priorities and focus.” 

But with the Ethereum Foundation estimating it would take several years to complete Serenity, Nimbus’ full vision is still quite far from being implemented in practice.

Source Cointelegraph

Singapore Act to License Cryptocurrency Firms Comes Into Effect

Legislation regulating the operations of cryptocurrency firms in Singapore comes into effect today, Jan. 28.

The new Payment Services Act will regulate cryptocurrency payments and trading enterprises under some aspects of the regulatory regime that currently governs traditional payment services and require them to hold a license.

Crypto payment services must also comply with the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act.

The new rules place crypto services under the oversight of the Monetary Authority of Singapore. The regulator announced in a press release published earlier today that the new framework is expected to “enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.” The regulator’s Assistant Managing Director Loo Siew Yee said:

“The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”

Licensing requirements

The new regulations require cryptocurrency-related firms to apply for operating licenses such as a money-changing license, a standard payment institution license and a major payment institution license.

According to a Jan. 27 Bloomberg report, Japanese cryptocurrency exchange Liquid and its London-based competitor Luno reportedly plan to apply. Liquid CEO Mike Kayamori said, “We welcome the Act with open arms.”

As the cryptocurrency space becomes increasingly regulated, many jurisdictions are setting licensing requirements for cryptocurrency businesses. Particularly famous is the case of the stringent BitLicense introduced in the state of New York, which the regulator amended for the first time in nearly five years in December 2019.

Malta introduced licensing requirements for cryptocurrency businesses in July 2018 and received queries from 21 cryptocurrency exchanges seeking authorization to operate in the country. Japanese cryptocurrency exchanges are required to register with the Financial Services Agency since the introduction of that country’s Payment Services Act in April 2017.

Source Cointelegraph

Bitcoin Gold Blockchain Hit by 51% Attack Leading to $70K Double Spend

The Bitcoin Gold (BTG) blockchain has suffered a 51% attack resulting in over $70,000 worth of BTG being double spent. According to a GitHub post by James Lovejoy, a researcher at MIT’s Digital Currency Initiative, the hard-fork of Bitcoin was hit by two deep reorganizations of over 10 blocks on Jan. 23 and 24.

A 51% attack is a situation where a single entity or group controls over half of the hashpower securing a blockchain. This then allows control over confirmation of new transactions, and the power to reverse completed transactions, allowing the double spending of coins.

Two 51% attacks in six hours

In the first attack, just after 18:00 GMT on Jan. 23, 14 blocks were removed from the blockchain and 13 then added. 1,900 BTG worth approximately $19,000 at the time were double spent in the redirect of one transaction.

Just over six hours later, in the early hours of Jan. 24, another attack removed 15 blocks and added 16. 5,267 BTG ($53,000 at the time) were double spent in three transactions that were redirected.

Does crime pay?

Bitcoin Gold uses the Equihash algorithm known as Zhash, in order to remain mineable on consumer graphics cards. Based on Nicehash market prices for Zhash, the estimated cost of each blockchain reorganization attack was around $1,700.

The attacker would have recouped around the same value in block rewards, meaning that the attacks at least broke even, and were possibly profitable if the double spend was successfully extracted from the system.

Following the attack, the price of Bitcoin Gold spiked. On Jan. 26, the coin moved from $10.42 to $11.60 in a matter of hours. At press time, the coin is up nearly 14% on the day to trade at $11.74.

Binance increases escrow periods

At the time of the attack, major cryptocurrency exchange Binance allowed trading of BTG deposits after six confirmations, and withdrawal after 12 confirmations. A 14 or 15 block reorganization would therefore have evaded both of these escrow periods.

Binance has since increased its withdrawal requirement to 20 blocks, although this still does not preclude the possibility of a 51% attack being financially viable.

As Cointelegraph reported, Bitcoin Gold was previously the subject of a 51% attack back in May 2018, when an estimated $18 million of BTG was overspent, leading to the coin being delisted on Bittrex.

Source Cointelegraph

What Impact Would a Ripple IPO Have on XRP Price?

Blockchain payment network Ripple launching an initial public offering (IPO) could, in fact, devalue the cryptocurrency in which it holds a majority stake. 

According to several market participants interviewed by Cointelegraph over the weekend, Ripple going public has potential implications for the fate of altcoin XRP. 

Ripple IPO: boom or bust for XRP?

The company’s CEO, Brad Garlinghouse, last week hinted an IPO may occur within the next year. 

In the face of flagging XRP prices, the impetus behind a major fundraising event is clear for commentators, but whether it would reverse the token’s fortunes is not at all clear. 

“Though Ripple is making inroads, it is yet to disrupt the global money transfer system in a major way,” regular Cointelegraph contributor and analyst Rakesh Upadhyay said. “Initially, after the IPO, the market participants might be patient but they will soon seek results. When the results don’t come through, it will hurt prices.”

For Upadhyay, Ripple’s lack of progress despite its various deals with major banks and other businesses means harder times are still to come. 

A telltale sign that liquidity remains problematic is Ripple’s mass selloffs of XRP. As Cointelegraph reported, these were bigger in 2019 than ever before. Even the IPO announcement failed to move XRP/USD significantly higher.

Upadhyay added:

“A sharp fall in price will make it difficult for Ripple to raise money. It has been selling tokens, which shows that it is not making enough money to fund its operations. But unlike before, after the IPO, Ripple will also not be able to sell tokens without announcing beforehand. When announced, this will again hurt prices.”

XRP/USD 1-year chart

XRP/USD 1-year chart. Source: Coin360

A different kind of selloff

The idea of an IPO becoming a straightjacket for Ripple was echoed by the head of Cointelegraph Markets Allen Scott. 

For him, the IPO would be a litmus test for buyer appetites already under scrutiny after the XRP selloffs.

“Many see Ripple selling XRP regularly as a recurring ‘IPO’ already sans shareholder rights,” he said. 

Scott continued:

“So this might actually hurt Ripple — it would put into question not only its operational costs and business model of dumping on the market but more importantly, the existence of XRP.”

By contrast, for fellow contributor and ex-eToro analyst Mati Greenspan, an IPO could allow Ripple to strengthen its position vis-a-vis XRP.

“My feeling is that it would be positive. Additional funding for Ripple would mean less reason to sell off tokens,” he summarized.

Perhaps predictably, prominent XRP investors share even less of the sense of foreboding. Michael Arrington, the founder of TechCrunch and hedge fund Arrington XRP Capital, told followers to “disregard FUD” around the IPO.

“It’s healthy, and awesome if/when it happens,” he tweeted on Jan. 24 in the wake of Garlinghouse’s announcement.

Source Cointelegraph

Ex-Employees Sue Tron’s Justin Sun for $15M Over Alleged Harassment

Two former employees at BitTorrent, the peer-to-peer torrent client acquired by Tron in 2018, have sued Tron founder and CEO Justin Sun for alleged labor violations and harassment.

Unsealed court documents filed in California on Oct. 28 reveal that plaintiffs Lukasz Juraszek, 28, and Richard Hall, 50, are seeking $15 million in damages against Rainberry Inc. (the legal operating entity for the Tron Foundation), Sun and his head of engineering, Cong Li.

The plantiffs’ complaint for damages rests on claims of wrongful termination, racial discrimination, a hostile work environment, fraud and whistleblower retaliation, harassment and unfair employment practices, including labor code violations and unfair business practices.

Hall’s role as product director at BitTorrent and the Tron Foundation spanned seven months until June 2019; Juraszek worked as a software engineer between February and August of the same year.

“Sustained campaign” of hostility

The 70-page lawsuit contends that both plaintiffs faced discrimination on the grounds of their Caucasian origins as well as for their refusal to stay silent about their concerns as to the legality of certain of the company’s operations, including allegedly criminal violations of state and national statues concerning pirated copyright materials and child pornography.

The documents allege that both employees faced hostility and retaliation due to the fact that neither “fit the profile”:

“The kind of worker that defendant Justin Sun sought: an employee who was mainland Chinese, would not object or “rock the boat” when they saw actual or potential illegal activity […] and who would work […] from 9 a.m. to 9 p.m. daily, six days a week […] without […] voicing any concerns about illegal, unethical, immoral or unscrupulous business activities.”

Hall claims his employment was summarily terminated after an alleged sustained campaign of discriminatory harassment against him by executive management for his refusal to engage in what he considered to be “blatantly illegal, unethical and unscrupulous” operations. 

Juraszek, who contends he faced similar ill-treatment over his objections to the firm’s activities, further claims that the termination of his employment was orchestrated by Li, with the latter allegedly advising Juraszek’s supervisor to hold him to “impossibly high engineering standards” that he “could not possibly accomplish.”

Juraszek claims that this punitive treatment came despite his recent pay grade promotion for superior work performance, and claims that the pressure was little more than recrimination for his own objections to Rainberry’s allegedly “sordid and unethical” business choices.

Sun denies “each and every” allegation

Both plaintiffs seek compensation for alleged hostility and retaliation against them as whistleblowers, among other claims. They have accused Sun of misrepresenting himself as a young, aspirational “whiz-kid” and protege of the esteemed Alibaba founder Jack Ma while he in fact, allegedly, engages in illegal activities and manipulates cryptocurrency for his personal profit.

On Dec. 12, Sun submitted a response to the plaintiffs’ claims, denying “each and every material allegation” contained in their complaint and contending that his actions as an employer were “non-discriminatory, non-harassing, non-retaliatory, reasonable, justified, privileged, done in good faith, and for legitimate, and lawful business purposes.”

Cointelegraph reached out to Sun for comment, but did not receive an immediate response as of press time. This article will be updated should he respond.

Last week, Cointelegraph reported that 17 of the top 25 most-used Tron decentralized applications appear to fall under a gambling classification on a recent list of the most popular Tron protocol-based DApps.

Source Cointelegraph