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Justin Sun Faces Potential Lawsuit From Chain Over Manipulation Allegations

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1 month ago

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Blockchain protocol Chain is weighing legal action against TRON founder Justin Sun following allegations of market manipulation. On January 24, Sun accused Chain of engaging in activities that could harm cryptocurrency exchange users, specifically referencing the use of high leverage and contracts. 

Sun posted on the platform X (formerly Twitter), tagging major exchanges such as Coinbase, Kraken, Bybit, KuCoin, and HTX Global, urging them to investigate Chain’s activities.

Chain Threatens Lawsuit Against Justin Sun Over Market Manipulation Claims

Following a heated discussion on X, Chain announced its intent to pursue legal action against Justin Sun. The dispute began when Sun claimed that Chain’s alleged actions posed risks to crypto exchange users. He also stated he would report Chain’s activities to the SEC and DOJ.

In response, Chain firmly denied the allegations. The company clarified that it is not involved in any trading or manipulation of its XCN token. Chain also stated that XCN is managed by OnyxDAO, not by Chain itself. The company emphasized its commitment to transparency and accountability while exploring legal options against Sun.

Founded in 2014, Chain has raised over $40 million from investors, including Pantera Capital and Citigroup. The company has undergone significant developments, including its acquisition by Stellar in 2018 and re-acquisition in 2020. Chain operates in the blockchain space with a focus on advancing decentralized technology.

Notably, the lawsuit threat emerged days after Justin Sun revealed a strategy to boost ETH price to $10,000 by halting ETH sales and taxing Layer 2 solutions.

Sun Tags Major Exchanges and Demands Investigation

Justin Sun’s accusations were amplified by tagging cryptocurrency exchanges in his post. He called on platforms like Coinbase, Kraken, and Bybit to investigate Chain’s activities. Sun warned of the alleged risks associated with high leverage and contracts used by Chain.

Chain’s response included a clear statement disassociating itself from the management of the XCN token. The company reiterated that OnyxDAO manages XCN and denied any involvement in trading or market manipulation.

The blockchain protocol tweeted, 

“The Chain team is not actively engaged in any trading of XCN, nor involved in any market manipulation directly or indirectly. We take these allegations extremely seriously and are exploring legal remedies against Justin Sun.”

 XCN Price Action

This escalation occurred amidst a surge in XCN’s market value. The token recorded a 149% price increase in one day and nearly 400% over the week. Sun’s claims appeared to link this price movement to alleged manipulation, further intensifying the situation.

At press time, Onyxcoin (XCN) is trading at $0.0242, marking a rise of 32% over the past 24 hours. The cryptocurrency has seen an increase in trading volume, up 273% to $1.42 billion, alongside a market capitalization that has grown to $745.24 million.

Meanwhile, the Tron co-founder recently emphasized the security advantages of Wrapped Bitcoin (WBTC) over Coinbase Wrapped BTC (CBBTC). Justin Sun critiqued Coinbase’s lack of a Proof of Reserves system, highlighting the risk of asset freezing.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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CME Group to Roll Out Solana (SOL) Futures on March 17

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7 hours ago

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February 28, 2025

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The CME group has announced plans to launch Solana (SOL) futures on its derivatives marketplace on March 17. This is significant because it could easily pave the way for the approval of the Solana ETFs.

CME Group To Launch Solana (SOL) Futures On March 17

In a press release, the CME group, the world’s leading derivatives marketplace, announced that it plans to launch Solana (SOL) futures on March 17, subject to regulatory approval. Market participants will be able to trade both a micro-sized contract (25 SOL) and larger-sized contract (500 SOL).

Speaking on this development, the CME Group’s Global Head of Cryptocurrency Giovanni Vicioso said,

With the launch of our new SOL futures contracts, we are responding to increasing client demand for a broader set of regulated products to manage cryptocurrency price risk. As Solana continues to evolve into the platform of choice for developers and investors, these new futures contracts will provide a capital-efficient tool to support their investment and hedging strategies.

Per the announcement, the SOL futures will be cash-settled and based on the CME CF Solana-Dollar Reference Rate, which serves as a reference rate of the Solana price in USD. Solana will become the third crypto on the derivatives platform, alongside Bitcoin and Ethereum.

Significance Of The SOL Futures Launch

The CME Group’s launch of the Solana futures is significant as it could pave the way for the US SEC to approve the pending SOL ETF applications. Commenting on this development, the president of the ETF store Nate Geraci, also confirmed that the Solana futures launch “bodes well” for SOL ETF prospects.

Before now, the SEC, under Gary Gensler, had argued that crypto ETFs are easily susceptible to market manipulation. However, the court in Grayscale’s case against the Commission ruled that the futures and spot markets are correlated. If the SOL futures market launches, the Commission has no reason to deny a Solana spot ETF.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Upbit Operator Dunamu Files Appeal Against FIU Over New Customer Transaction Suspension

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10 hours ago

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February 28, 2025

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South Korean crypto exchange Upbit’s operator, Dunamu, has challenged the sanctions imposed by the Financial Intelligence Unit (FIU) by filing an appeal with the Seoul Administrative Court. As part of the legal action, Dunamu filed a lawsuit seeking to overturn the business suspension order and to halt the execution of the sanctions.

Upbit Operator Dunamu Seeks to Halt FIU’s Sanctions, Files Lawsuit

In a recent development, Dunamu, South Korean crypto exchange Upbit’s operator, filed an appeal against the Financial Intelligence Unit. The appeal seeks to cancel the business suspension order imposed by the FIU. In addition, the platform requests the court for a stay of execution, halting the implementation of the agency’s disciplinary actions.

Keeping specific details undisclosed, a Dunamu official stated,

We made a careful decision, and it is difficult to talk about the specific details…We will faithfully explain during the trial.

Dunamu Faces Business Suspension Order over Regulatory Obligations

Recently, South Korea’s FIU announced disciplinary actions against Dunamu citing its failure to meet key regulatory obligations. On Tuesday, the agency asked the platform to end business operations for three months. As part of the development, Dunamu would face restrictions on new customers’ crypto transactions.

In detail, the regulator banned Dunamu from facilitating new users to transfer cryptocurrencies from and to other exchanges from March 7 to June 6, 2025. However, the platform’s existing customers could continue trading activities during the suspension period.

Along with the business suspension order, the FIU also took disciplinary actions against Dunamu’s executives. Notably, the regulator sent a warning to CEO Lee Sirgo and dismissal orders or cautions for eight other employees.

Notably, South Korea’s increasing scrutiny over crypto platforms comes amid the US SEC’s loosened regulations. Recently, the SEC dropped multiple crypto lawsuits involving Coinbase, Robinhood, Uniswap, and Tron Foundation.

Upbit’s Crypto Regulatory Violations: Insights

Significantly, the FIU alleged Upbit and its operator breached several key regulations, including virtual asset transaction rules, customer verification requirements, and suspicious transaction reporting mandates. In particular, the regulator found Dunamu facilitating over 45,000 crypto transactions with 19 unregistered overseas virtual asset service providers.

In addition, the platform failed to adhere to the customer verification rules on a massive scale. In January, the FIU suspended Upbit’s operations, citing Know-Your Customer (KYC) violations. The agency also warned the company over violating the Specific Financial Transaction Information Act.

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Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Will the SEC Dismiss XRP Lawsuit After Closed-Door Meeting?

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17 hours ago

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February 28, 2025

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The U.S. Securities and Exchange Commission (SEC) held a closed-door meeting on February 27, 2025, raising speculation about whether the agency will drop its appeal in the ongoing Ripple case.

The legal dispute, which began in December 2020, revolves around the SEC’s claim that Ripple sold XRP as an unregistered security. With growing regulatory scrutiny and political pressure, the crypto community is watching closely for any signs of resolution in the XRP lawsuit.

Will the SEC Dismiss XRP Lawsuit After Closed-Door Meeting?

The SEC’s Sunshine Act meeting focused on enforcement actions, administrative proceedings, and litigation settlements. While the agenda remains confidential, speculation is growing that the Ripple case was a topic of discussion. Recent decisions by the SEC to drop investigations into major crypto firms, including Coinbase and Uniswap, have fueled hopes that the XRP lawsuit may be nearing its conclusion.

Legal experts have mixed opinions on the SEC’s next move. Former SEC lawyer Marc Fagel downplayed the speculation, stating,

“There’s no more reason to think Ripple is on the agenda than at the last 200 meetings.”

However, pro-XRP attorney Bill Morgan remains confident in Ripple’s position, pointing out that the SEC’s legal argument has weakened after Judge Analisa Torres ruled in 2023 that XRP itself is not a security.

Cynthia Lummis Stance on SEC Dropping Lawsuits Against Major Firms

U.S. Senator Cynthia Lummis, a vocal advocate for cryptocurrency regulations, recently highlighted the need for legal clarity on digital assets. She stated, “Most digital assets are not legally securities under the Howey Test. The United States is behind other countries in creating laws for digital assets.”

Responding to Lummis’ statement, Bill Morgan referenced the Ripple case and Judge Torres’ ruling.

He wrote on X, “So you agree Judge Torres was correct in finding XRP itself is not a security in SEC v Ripple.” This exchange highlights the growing recognition among lawmakers and legal experts that the SEC’s classification of XRP may not hold up under legal scrutiny.

Moreover, the SEC has recently withdrawn several high-profile lawsuits, signaling a possible shift in its enforcement strategy. The agency voluntarily dismissed its case against Coinbase Global Inc and Consensys reached an agreement to dismiss the securities enforcement case related to MetaMask. Concurrently, the agency has also dropped cases against Uniswap, Gemini, OpenSea, Robinhood Crypto, and Binance’s case being paused for 60 days.

Potential Impact on XRP Price 

The XRP lawsuit has had a strong effect on Ripple’s market standing. On February 28, XRP declined by 7.59%, following broader market trends with Bitcoin price falling below the $80k support. However, analysts believe that if the US SEC drops its appeal, XRP price could experience a major rally to $320.

Historical price trends show that legal victories for Ripple have led to significant gains. When Judge Torres ruled in Ripple’s favor in July 2023, XRP surged by over 70%. A full dismissal of the XRP lawsuit could push the token toward its previous all-time high of $3.55.

Market analysts are also discussing the potential approval of an XRP spot ETF, which could attract institutional investment especially with the agency acknowledging some XRP ETF’s last week. If the Ripple case is resolved, XRP may gain further regulatory clarity, making it more appealing to large financial firms.

While speculation around the SEC meeting continues, no official decision has been announced regarding the XRP lawsuit. The next key deadline is April 16, 2025, when Ripple must submit its reply brief related to the SEC’s appeal. If the SEC decides to withdraw its appeal before then, the case could effectively be resolved.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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