The team behind the Chain blockchain protocol has threatened the network's founder TRON Justin Sun is being sued over allegations of market manipulation.
On January 24, Sun stated that Chain's actions in managing the XCN token could cause serious harm to many users of the protocol.
Chain is currently engaged in market manipulation. They are using high leverage and contracts that could cause serious harm to many users of the platform. I recommend that large exchanges pay close attention to this risk, he wrote.
While Sun did not detail the alleged manipulations, he said he would "report their illegal activities to the Securities and Exchange Commission and the Department of Justice for further investigation."
Chain developers quickly responded to Sun's post, denying all accusations.
The Chain team does not actively participate in XCN trading and does not engage in market manipulation, directly or indirectly. We take these allegations extremely seriously and are exploring legal options to defend ourselves against Justin Sun. XCN is governed by OnyxDAO, not Chain, the protocol representative said.
After this, Sun wrote another post in which accusations were already directed towards the OnyxDAO protocol.
The talk of market manipulation began after the price of the XCN token jumped by 149% in just one day and by almost 400% in a week.
