Binance.US Delists TRX Amid Justin Sun Arrest Rumors

Binance.US has announced it will delist TRX, the token associated with the TRON network led by Justin Sun, at a time when rumors are circulating about Sun’s alleged arrest in Hong Kong.

Binance.US Delists TRX Amid Justin Sun Arrest Rumors

According to the announcement, Binance.US will officially delist the trading pairs TRX/USD, TRX/USDT, and TRX/BTC at 10 AM on April 18 (Vietnam time). Additionally, the exchange will cease support for SPELL, the token of the Abracadabra lending protocol.

Binance.US cited the decision to delist as being due to the projects failing to meet the exchange’s criteria, which include:

• Risk profile of the digital asset token
• Contribution to a healthy and sustainable cryptocurrency ecosystem
• Trading volume and liquidity
• Legal status in the U.S.
• Clear development and growth activity
• Resilience to external and internal attacks
• Network/smart contract stability
• Community engagement
• Evidence of unethical behavior/fraud or negligence

Binance.US confirmed that it will continue to support TRC-20 USDT and USDC on the TRON blockchain.

Following the announcement, TRX saw a significant drop and is currently trading around $0.063 USD.

1H Chart of TRX/USDT on Binance at 11:10 AM on April 12, 2023

The delisting decision by Binance.US likely stems from the U.S. Securities and Exchange Commission (SEC) suing TRON founder Justin Sun in March, alleging violations of securities laws, including fraud and market manipulation regulations. Sun has countered that the charges lack convincing arguments due to unclear legal frameworks, referring to the SEC’s lawsuit as more of a “staff complaint.” Recently, Sun has faced further negative news, including losing his position as Grenada’s WTO ambassador and rumors of attempting to sell the Huobi exchange.

Adding to the drama, rumors began circulating on social media on the evening of April 11 that Justin Sun had been arrested in Hong Kong, causing significant concern within the community.

However, shortly thereafter, Huobi’s new owner tweeted a cryptic “4” as a way to dismiss the unfounded rumors. The “4” was initiated by Binance CEO Changpeng Zhao and is intended to signify ignoring FUD (fear, uncertainty, and doubt) and false information.