Tron founder, Justin Sun, is making headlines again with his latest offer to the US government. Sun has publicly proposed to purchase 41,500 Bitcoin (BTC) from the government. He wants to purchase the set amount of BTC at a 10% discount in an over-the-counter (OTC) deal. The offer comes as the US government has announced its intention to sell 41,500 Bitcoin this year. Sun took to Twitter to make his bold proposal. In a recent tweet, Sun stated that he “would like to purchase these BTC at a 10% discount for an OTC deal.”
Sun’s proposal raises several questions about the future of the 41,500 Bitcoin. While crypto Twitter believes Sun is trolling in his tweet, the possibility that Sun will go for the deal exists. If the US government accepts his offer, it could minimize the market impact of the sale. On the other side, however, the 10% discount proposed by Sun could mean a significant loss for the government. If US authorities sell that amount of Bitcoin at market price, they could profit more. Furthermore, Sun’s ongoing legal issues with the SEC may also block any potential deal.
As the founder of Tron, a leading blockchain platform, Sun has a history of making bold moves in the cryptocurrency world. In the past, he has been known for his aggressive marketing strategies and ambitious projects, which have garnered both praise and criticism from the crypto community.
Justin Sun And His Issues With US Regulations
Sun’s offer is controversial. What makes it even more controverial is his current legal issues with US regulatory bodies. The Securities and Exchange Commission (SEC) sued Sun over alleged “wash trading” activity. The founder of Tron and CEO of BitTorrent is currently under fire from the regulatory body of the US. Earlier this year, Sun was fined for buying and selling assets with the intent to manipulate the market. Moreover, these trades had the intention to create a false impression of a high trading volume.
Where Is The Government Getting 41,500 Bitcoin?
The answer to this question is simple, the Silk Road. The Silk Road was an online marketplace that operated in the dark web. This marketplace made its debut back in 2011 and it was shut down by FBI in 2013. Just two years after it shut down, Ross Ulbricht, the creator of Silk Road, was found guilty of money laundering, computer hacking, and conspiracy to traffic narcotics. Additionally, he was senteced life in prison without the possibility of parole. This event market a significant turn for cryptocurrency, as it stained the name of the industry heavily. Ever since then, the crypto industry has been under fire for being used mostly by drug dealers, criminals, and terrorists.
When the FBI brought down Ross Ulbricht, they also siezed around 45,000 Bitcoin. Back then, 45,000 was not that valuable. Today, however, 45,000 BTC translates to approx. $1.35 billion. Selling such a huge amount of Bitcoin in a single trade would shock the market. Considering this, authorities stated that they will be selling the Bitcoin in batches throughout the year to minimize market impact.