Bitcoin Expert Exposes Alleged ‘Web of Deception’ By Tron’s Justin Sun

In an in-depth analysis shared on X (formerly Twitter), Bitcoin expert Dylan LeClair has pulled back the curtain on a purported “web of deception” attributed to Justin Sun, Tron’s founder. LeClair’s detailed examination touches on several nuanced movements within the crypto-sphere, and the findings present potentially alarming implications for the broader ecosystem.

Bitcoin Pundit Raises Grave Accusations

LeClair meticulously unveils what he believes to be a series of opaque transactions, particularly involving USDT and its alleged replacement, stUSDT, on the crypto exchange Huobi, rebranded as HTX after its acquisition by Sun in late 2022.

Starting his investigation, the Bitcoin expert remarked, “In late 2022, Justin Sun reportedly acquired a controlling stake in Huobi, now named HTX, which had over $1.5b USDT deposits at the time. Over the summer, deposited USDT funds started getting replaced by stUSDT. This substitution has been largely unnoticed by Huobi users.” The emphasis on the covert replacement underlines the primary concern, hinting at an attempt to surreptitiously replace a well-accepted stablecoin with a lesser-known counterpart.

Diving deeper into the murky waters of stUSDT, LeClair questioned its legitimacy. “What is stUSDT? stUSDT, controlled by Justin Sun, claims to provide a yield by investing in ‘Real World Assets’ such as Treasury bills.” Yet, using on-chain analysis and data tracking, he contends, “the actual flow of funds from Huobi’s USDT to stUSDT and then to JustLendDAO indicates that no such investment into RWAs occurs.” This statement underscores the core of LeClair’s allegation: a potential diversion of funds under the guise of investment.

Corroborating his findings, the Bitcoin expert cites Patrick Tan from ChainArgos: “We’ve seen this one before — a closely associated ecosystem managed and run by one of crypto’s biggest personalities and a ‘staking’ system that doesn’t send the stablecoins where they’re advertised.”

Remarkably, stUSDT and USDT are considered the same asset natively on Huobi, as evidenced by their lack of stUSDT trading pairs. The timeline of Huobi’s reserves, as detailed by LeClair, further strengthens his argument.

“As seen in Bloomberg, you can see a shift in Huobi’s reserves from July 1 t

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Author: Jake Simmons

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