Billionaire Tron founder Justin Sun has been fingered for taking part in a “governance attack” scheme involving lender Compound Finance.
As per the above tweet from crypto think tank GFX Labs, Sun’s wallet borrowed 99,000 COMP tokens worth over US$13 million last week, later sending 102,000 tokens to Binance.
Later, an address that received US$9 million worth of COMP tokens from Binance proposed adding TUSD (TrueUSD) as collateral to allow Compound users to take out loans against their TUSD holdings.
On-chain governance of DeFi protocols is often token-weighted, and while one GFX representative classified Sun’s loan as a “governance attack”, there is nothing to stop users from taking out loans to vote on proposals they back.
Sun Defends His Actions
While it’s impossible to verify that the proposal address belongs to Sun, he felt compelled to defend his actions in any case:
In December, Sun resigned his CEO position at the Tron Foundation to become Ambassador to the Grenadian Government, seeking to expand blockchain adoption on its behalf. At the time he said he would remain involved with the Tron community since the network had been officially decentralised.
A year ago, Sun was caught shilling the TRX token, attempting to inveigle a popular YouTuber and influencer to promote the crypto on his social channels.
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