Following Binance CZ’s Legal Troubles, Another Crypto Leader Caught Exit Scamming As Over $225 Million Mysteriously Disappears
Yesterday, prominent crypto figure Justin Sun was accused of exit scamming by an anonymous source known as WhaleWire. In a scathing social media post, WhaleWire alleged that over $225 million has recently been mysteriously drained from two Justin Sun-owned platforms: cryptocurrency exchange HTX (formerly Huobi) and blockchain network Heco.
Exit Scam Allegations “BREAKING: JUSTIN SUN EXIT SCAMS AGAIN,” opened WhaleWire’s post. According to the anonymous source, $100+ million disappeared from both HTX and Heco in separate incidents that Justin Sun is calling “hacks”—similar to what he said last week when his exchange Poloniex was “hacked” for $125 million. However, WhaleWire insists these are simply covers for exit scams orchestrated by insiders using pre-installed backdoors.
Mounting Pressure From Authorities
WhaleWire asserts the recent purported hacks and disappearances of customer funds from Sun’s ventures may actually be exit strategies as regulators ramp up investigations into crypto leaders.
“Regulators are clearly cracking down – First it was SBF, then CZ, and next will be Sun. He’s doing what all these criminals do when their time is up, they fake a “hack” and exit scam with everyones funds,” the post states.
Indeed, Sun’s alleged exit scamming follows similar mysterious occurrences at other major crypto exchanges lately. FTX dealt with hundreds of millions vanishing through supposed hacks right before its founder, Sam Bankman-Fried was arrested. Changpeng “CZ” Zhao of Binance is now also facing legal troubles regulators have found him guilty of fraudulent conduct.
Notably, the collapse of Mt. Gox in 2014—once the world’s largest bitcoin exchange—was also first blamed on a hack that stole what would now amount to billions of dollars worth of bitcoin. Founder Mark Karpelès was later arrested and charged with embezzlement.
The Next Shoe to Drop? With crypto exchange leaders facing increased heat, WhaleWire suggests Justin Sun may be next: “First it was SBF, then CZ, and next will be Sun.”
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While Sun has not directly responded to the allegations yet, his ventures are urging calm and an internal investigation into the missing funds even as fears spread of another major crypto exit scam.
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