On July 8th, Hayden Otto on Twitter has tweeted that a crowd has gathered to protest against a ponzi scheme that used “Tron” as their name.
— Hayden Otto (@haydenotto_) July 8, 2019
In the tweet, a crowd surround the office, as well as police guarding the offices and the staff from an angry mob, can be seen. According to the reports, the scam has conducted over $30 million losses and a suicide.
People are considering Tron to be a fraudulent company and the gathered crowd can be head saying “Tron is a scam”.
In response, the CEO of Tron Justin Sun has tweeted:
— Justin Sun (@justinsuntron) July 8, 2019
People on Reddit have explained the situation:
“A group was using a derivative of Tron’s Chinese name to conduct a ponzi type of scam, which many Tron enthusiasts fell for losing millions, one victim committed suicide. Victims blaming Tron & Justin Sun for not confirming whether the group was working with Tron.”
Yahoo! Finance reports that Justin Sun has complied with the scam by staying silent and not pointing out the potential harms of the ponzi scheme. Tron is known in China as “Wave Field” but the ponzi scheme named “Wave Field Super Community” has drawn the attention of many investors, since the name was associated with China-based cryptocurrency startup Tron.
“Launched in January this year, “Wave Field Super Community” claimed to be a so-called Tron “Super Representative,” one of 27 nodes given special status on the platform. Victims said that, ever since the scheme’s launch, they asked Sun to clarify the relationship, but he did not respond.”
The total losses tolled to 200 million CNY ($30m) and a suicide of a middle aged woman Xia Bing, whose suicide note has went wiral on the WeChat messaging site. According to Yahoo! Finance, woman was a single parent and borrowed money from the neighbour to invest into the ponzi scheme.