Tron founder Justin Sun not arrested, cites FUD meant to trigger a market reaction

Tron founder Justin Sun has denied claims of being arrested, citing FUD using the characteristic "4" that Binance CEO Changpeng Zhao (Alias CZ) uses whenever he wants to discredit a claim.

Who said Justin Sun was arrested?

There were rumors spread that Justin Sun was arrested in Hong Kong and held at Michinawanamun Station. The post has since been deleted. The notification was perceived to be true, given that the source, FXhedge, was among the first to publicize the news. The high reputation that @FXhedgers enjoys made Twitter users believe the development was legit. Further, Sun had twitted when he arrived in Hong Kong, which added credence to the possibility of an arrest in the region.

If the rumor were true, it would be similar to what happened to Terra executive Do Kwon, who was arrested and detained in Montenegro at the Podgorica Airport. Nevertheless, prominent players in the crypto arena have come forward to discourage such moves meant to spread Fear, Uncertainty, and Doubt (FUD) in the market.

Binance CZ is at the forefront, saying, "Not for myself. Just really sad to see people spreading FUD in the industry. I unfollow/block them."

As previously reported, the same joke was pulled against CZ recently, claiming that Interpol had issued a Red Notice against him. In his case, however, the perpetrator photoshopped the image to make it appear real.

Just like the CZ-related case affected Binance Coin (BNB), causing it to plummet almost 3% in minutes, this has affected the native token of the Tron ecosystem TRX. Data on CoinGecko shows that Tron's TRX is down 0.3% in the last hour and around 1% in the last 24 hours.

At the time, CZ had cautioned traders and investors against dancing to every whim of FUD, noting that panic selling would never get anyone rich.

Binance CEO Changpeng Zhao's involvement in Justin Sun's latest web indicates the close relationship between the two executives and their companies. Barely a week ago, the two were entangled in another story around an alleged deal for Sun to sell his stake in the Huobi exchange to Binance.

We have always regarded Binance as one of our most important partners and will continue to work closely with them on all levels. However, I must point out that in the past week or so, I have not proposed any offer to CZ regarding the purchase of HuobiGlobal, nor have we even discussed Huobi in the past week or so.

Tron price drops 0.3% on FUD-induced reaction, recovers almost instantly

Tron price (TRX) dropped by around 0.3% after the news rumor spread but has since rallied 0.7% north after Justin Sun discredited the news

TRX/USDT 4-hour chart, TRX/USDT 1-hour chart

At the time of writing, TRX is auctioning for $0.066748, with a 24-hour trading volume of $325.9 million, up 60% as investor activity for the token continues.