Tax Dollars are Funding Justin Sun's TRON Blockchain
After two years of extravagant spending, the TRON Foundation received a $2 million handout from the U.S. government.
Key Takeaways
- The U.S. government created the Paycheck Protection Program to help small businesses survive the economic crisis caused by coronavirus.
- Despite costly acquisitions of several crypto-related startups, Justin Sun's TRON was included in the relief program.
- Prominent figures within the industry have objected the move and have asked Justin Sun to return the loan.
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TRON and BitTorrent CEO Justin Sun finds himself at the center of controversy, once again, after his company announced that it received a $2 million coronavirus stimulus loan from the U.S. government.
TRON Foundation Granted $2 Million in Aid
The ongoing pandemic has wreaked havoc in the American financial markets. Small sized businesses, especially, are suffering from the economic shutdown meant to lessen the spread of COVID-19.
With the wages of hundreds of thousands of employees at risk, the U.S. government created the Paycheck Protection Program (PPP) to help small businesses stay afloat. However, the Small Business Administration has had some serious issues making sure that these funds are distributed properly.
Such is the case that even Justin Sun’s TRON was approved for more than $2 million in aid, according to a post in the firm’s WeChat channel. But, many in the cryptocurrency community find the hand out to the controversial 28-year-old entrepreneur questionable.
While many hard working Americans are struggling with the complicated application process to receive a loan and getting rejected without reason, Sun is walking away with massive loads of cash, said Zach Herring, program director at ConsenSys.
Along the same lines, the head of Sino Global Capital, Matthew Graham, affirmed that Sun is trying to use this glitch in the PPP to gain some sort of legitimacy in China. Graham maintains that many people will misinterpret this aid as an endorsement from the U.S. government.
Justin Sun, who is notorious for his nearly-botched $4.5 million dinner with Warren Buffett and the hostile takeover of blockchain-based social network Steem, doesn’t seem like he needs the cash to survive the crisis, say critics—especially when taking into account his multi-million dollar acquisitions of crypto-related companies such as BitTorrent, Poloniex, and Steemit.
Crypto Briefing reached out to Sun and the TRON Foundation for comment and has yet to receive an answer.
It is worth mentioning that recently the U.S. Attorney’s Office for the District of Rhode Island charged two men for trying to take advantage of the small business loan program meant for COVID-19 relief.
Whether Justin Sun will face similar scrutiny is still up for debate.
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