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Crypto tycoon Justin Sun stripped of diplomatic title

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TL;DR

  • Justin Sun, the founder of Tron blockchain, has been stripped of his diplomatic status as Grenada’s ambassador.
  • Sun’s loss of diplomatic title comes amid legal troubles, as he was sued for fraud and securities violations by the US SEC.
  • The crypto tycoon’s legal woes may also affect Huobi Global’s expansion plans in Hong Kong, as regulators may be hesitant to approve a license under current circumstances.

Justin Sun, the founder of Tron blockchain, has been stripped of his status as an ambassador for Grenada. Reports indicate that the beloved crypto figure lost his position after the New National Party was ousted by the National Democratic Congress during the June 2022 elections.

While Sun has not publicly acknowledged the loss of his position, all ambassadors were recalled in the “early months” of the now nine-month-old administration, according to the Grenada Broadcasting Network.

The controversial entrepreneur was appointed as the World Trade Organization ambassador by the Grenada government in 2021. Since his appointment, Sun has often styled himself as “His Excellency” and has used the title in his social media accounts.

However, the Grenadian government has remained silent about Sun’s diplomatic status, and officials from the country’s foreign affairs office and government information services declined to comment.

Sun acknowledges the loss of his credentials

Sun tweeted on March 31 that his term as the Ambassador of Grenada to the WTO would be ending, “effective 31 March 2023.” This announcement came after weeks of speculation on social media and in the press that the TRON founder may have lost his credentials.

The loss of Sun’s diplomatic title comes at a time when he is facing legal troubles in the United States. Sun was sued for fraud and securities violations by the U.S. Securities and Exchange Commission (SEC) last week.

Sun, along with three of his companies, including the Tron Foundation, was accused of manipulating the market for Tron’s native token, TRX, through “extensive wash trading” and for “orchestrating a scheme to pay celebrities to tout TRX … without disclosing their compensation.” Eight celebrities, including Lindsay Lohan and Jake Paul, were also charged and have since settled.

Sun’s legal troubles affecting Huobi’s license application

Sun does not believe that the U.S. fraud charges levied against him will impact Huobi Global’s license application in Hong Kong, as reported by Nikkei Asia on March 27.

However, lawyers believe otherwise and suggest that the Hong Kong Securities and Futures Commission (SFC) will be hesitant to approve a license under the current circumstances.

According to the report, allegations of past misconduct will result in “extreme scrutiny,” which will hamper progress as regulators turn over every stone multiple times before reaching a conclusion. Lawyers believe that, at the very least, the process will be delayed significantly.

Despite the charges against him, Sun recently announced his plans to move Huobi Global’s headquarters to Hong Kong and advised the industry against being too “U.S.-centric.”

The city-state will legalize retail trading of cryptocurrencies on June 1 and has created a regulatory framework for the industry, which includes establishing a licensing regime for Virtual Assets Service Providers (VASPs).

The loss of his diplomatic status in Grenada marks a significant blow to his reputation, which has already been tarnished by the U.S. fraud charges levied against him.

Sun’s diplomatic immunity may have provided him with a sense of invincibility, but with the loss of his title, his fortunes may continue to tumble.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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