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Justin Sun Breaks Silence on Bitcoin Liquidation Rumors: ‘We Rarely Engage in Leveraged Trading’

Published August 5, 2024 9:44 AM

Verified by Insha Zia

Recent comments from figures like Justin Sun have sparked speculation about a policy reversal, but there's no official confirmation. | Credit: Visual China Group via Getty Images/Visual China Group via Getty Images

Key Takeaways

Justin Sun denies leverage trading Bitcoin amid rumors of liquidation hitting the founder.
Sun is rumored to have accumulated $1.11 billion worth of Ethereum.
The crypto community is closely watching Sun’s moves as the market tumbles.

Justin Sun, the founder of TRON (TRX) and chief adviser to Huobi, has taken to social media to set the record straight about his Bitcoin investments.

Amidst swirling rumors and speculation, Sun has come forward with a candid denial , addressing claims that he had taken a massive long position on Bitcoin at the $69,000 price level.

The TRON founder denied allegations made by Ki Young Ju, the CEO of CryptoQuant, who had earlier suggested Sun had made a bold bet on Bitcoin’s price using stUSDT as collateral.

Justin Sun Addresses Bitcoin Investment Rumors

Ki Young Ju’s accusations extended to labeling Sun as the enigmatic HTX whale that allegedly opened a long Bitcoin position at $67,000 with at least $420 million in positions.

The rumors about our positions being liquidated are false. We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry. Instead, we prefer to engage in activities that provide greater support to the industry and…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024

Yu raised concerns about the origins of the collateral, noting that the USDT reserve was around $24 million. The CryptoQuant CEO asserted that Sun purportedly used $460 million worth of stUSDT, a stablecoin project known for its high annual percentage yield, holding 89% of its supply in HTX.

However, Yu later removed his post, stating his intent to resolve the matter directly with the exchange team and stressing his desire not to impact their business negatively before they could respond.

We Prefer to Support the Industry

Sun revealed that he rarely engages in leverage trading to quell speculation.

The Tron founder emphasized that such high-risk trades offer little value to the industry. Instead, he committed to initiatives that foster meaningful growth and support for entrepreneurs and the broader ecosystem.

According to Sun, his focus lies in more constructive pursuits, including “staking, operating nodes, collaborating on projects, and assisting project teams in providing liquidity.”

While Sun clarified his non-involvement at the $69,000 Bitcoin price level, he did not comment on recent allegations about his Ethereum purchases. Reports indicate that since Feb. 8, Sun might have acquired 362,751 ETH, valued at approximately $1.11 billion, across three different wallets.

12 hours ago, Justin Sun (@justinsuntron ) allegedly spent 5M $USDT to buy 1,614 $ETH at ~$3,097.

Since Feb 8, Justin Sun might have bought 362,751 $ETH (est. cost: $1.11B) at ~$3,047 via 3 wallets (more details in previous posts 👇).

Note that he also deposited 45M $USDT to… https://t.co/xeW1usR3MJ pic.twitter.com/aJ4zhXFas2

— Spot On Chain (@spotonchain) July 11, 2024

Bitcoin Tumbles

Justin Sun’s clarification comes amidst a storm of chaos in the crypto writing. At press time, the market was ravaged by a catastrophic downturn, with $600 billion wiped from its total market capitalization, nearly $1 billion in liquidations , and a 15% decline— the largest single-day drop since November 2022.

Experts point to a combination of factors behind the crash, including the global stock market’s decline.

Japan’s Nikkei index has suffered its worst two-day decline since 1987, while big tech stocks in the US markets are struggling to find their footing. The S&P 500 has fallen 7% over the past three days, highlighting the broader market volatility.

Additionally, rumors of an investigation into Jump Crypto, a major market maker in the crypto industry, may have contributed to the market’s downward trend.

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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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