Yesterday, Circle, the company responsible for the popular cryptocurrency stablecoin USDC, revealed that they would no longer be partnering with the TRON blockchain. The immediate halt of USDC operations on TRON means that no new USDC tokens will be created on the platform, but transfers and redemptions will still be possible until February 2025. Circle’s unexpected announcement caused widespread speculation about the reasons behind their decision. On X (previously Twitter), TruthLabs (@BoringSleuth) shared an in-depth investigation into TRON, including a deep analysis of its history, founder Justin Sun, and their actions both on and off the blockchain. The report from TruthLabs starts with an intriguing discovery related to TRON’s initial coin offering and how its TRX tokens were distributed. In August 2023, I examined Tron’s initial coin offering, which is a decentralized autonomous organization blockchain created by Justin Sun. In this post, it was disclosed that Justin Sun controlled 17 of the top 0.6183 TRX wallets, representing more than 98% of the total token supply, according to TruthLabs. This raised worries about centralization and the possibility of manipulation within the TRON system. The report also explores the link between these wallets and a network tied to the Chinese Communist Party (CCP), which has been implicated in major cryptocurrency scams and the laundering of illegally acquired funds. One of their wallets was a Genesis wallet that received 133,7000 $ETH from ETH’s ICO in 2014/15. Additionally, the researcher alleges that over $3 billion worth of BTC on TRON disappeared from a Contract that was last active on 11/11/2022, the same day FTX declared bankruptcy. This raises suspicions of potential fraud by Tron founder Justin Sun. The consequences of these findings could be significant, as TruthLabs suggests that financial misconduct, such as Sun creating unbacked USDT to exchange for USDC, may have influenced Circle’s choice to separate from TRON. TruthLabs raised concerns about the potential scenario where Justin Sun, the top creator of USDT, prints $3M in unbacked USDT, exchanges them for backed USDC, and uses them to restore his unbacked assets. This action could involve significant risks. An article on a legal clash between a Texas crypto company and the US SEC over digital asset regulation is also relevant.