Justin Sun Faces Fresh Manipulation Allegations as Whistleblower Revives SEC Scrutiny

February 1, 2025 – Regulatory pressure on high-profile crypto founders has intensified in early 2026, as U.S. authorities continue to examine past market conduct across major token ecosystems. Against this backdrop, new public allegations have surfaced that echo earlier enforcement actions. This week, manipulation claims made against Justin Sun, founder of TRON, have drawn renewed attention to unresolved questions surrounding TRX trading activity and ongoing regulatory cases.

What Happened

On February 1, 2026, an X user operating under the handle @tenten19901107, identifying herself as Zeng Ying, publicly accused Justin Sun of orchestrating coordinated market manipulation during TRON’s early growth phase.

In a pinned post, the user claimed Sun used the identities and mobile devices of employees to open multiple accounts on Binance. According to the allegation, these accounts executed synchronized buying and selling of TRX to inflate trading activity before selling into retail demand.

The whistleblower stated she holds supporting materials, including internal chat records, and expressed willingness to cooperate with the U.S. Securities and Exchange Commission. The post gained significant engagement, reaching hundreds of thousands of views within hours.

As of publication, neither Sun nor TRON has issued a public response. The claims remain unverified.

Why This Matters

The allegation closely mirrors elements of the SEC’s March 2023 civil case against Sun and affiliated entities. In that lawsuit, the regulator accused Sun of directing large-scale wash trading of TRX between 2018 and 2019, alongside unregistered securities sales and undisclosed celebrity promotions.

While the SEC case was paused in early 2025 amid settlement discussions, new public claims could raise pressure to reopen or expand investigations if corroborated. For TRX holders, renewed scrutiny increases regulatory overhang, even in the absence of formal charges.

For the broader crypto market, the episode reinforces a persistent theme. Founder-led tokens remain exposed to legacy compliance risks long after initial launches. Public allegations alone can affect sentiment, liquidity, and exchange relationships.

At a systemic level, the situation highlights the growing role of whistleblowers and public disclosures in shaping regulatory narratives, especially when past enforcement actions remain unresolved.

Justin Sun’s History

Justin Sun has long stood out as one of crypto’s most polarizing figures. Since founding TRON in 2017, he has paired aggressive marketing with major acquisitions, including BitTorrent. However, he has also faced repeated allegations from regulators and media outlets.

In particular, the SEC’s 2023 complaint accused Sun of directing more than 600,000 wash trades. As a result, regulators alleged he profited from $31 million in unregistered TRX sales. At the same time, several celebrities named in the case settled related charges. Notably, they did so without admitting wrongdoing. Subsequently, courts allowed investor class-action claims to proceed to discovery.

Beyond the SEC case, investigative reports have previously linked TRON usage to illicit finance activity. Meanwhile, Sun has denied all manipulation accusations and wrongdoing, he has instead pursued defamation actions against critics. Importantly, authorities have filed no criminal charges against him as of early 2026.

Against that backdrop, the latest claim emerges amid heightened U.S. scrutiny of crypto market manipulation and exchange transparency. Ultimately, whether it leads to formal action will depend on evidence review and, in turn, regulatory response in the coming weeks.