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Buffett's dinner has been full of twists and turns, and the "border control" theory has pushed Justin Sun to another climax of attention. However, he and Tron may usher in their darkest moments with this wave of attention.
ChainDD (WeChat ID: ChainDD)
Unprecedented in 20 years, this is the first time in 20 years that the "Buffett Lunch" has been canceled. In the past day, Sun Yuchen, who announced the cancellation of Buffett's lunch date, was deeply involved in the pull of truth and rumors in public opinion.
“As a major event that attracted the attention of the global financial community, the "Buffett Lunch" was originally a good thing. It initially boosted the morale of practitioners in the blockchain industry to a great extent, and made Justin Sun highly praised. But soon, public opinion was reversed. Because Sun Yuchen mocked Sogou CEO Wang Xiaochuan, blasted Wang Sicong, invited US President Trump, who was not optimistic about Bitcoin, to attend the Buffett lunch and a series of over-exposure behaviors, he was almost in the midst of huge public opinion controversy.
On July 23, Sun Yuchen officially announced that he needed to rest due to kidney stones, and Buffett canceled his lunch, which caused thousands of waves. However, there were slight discrepancies between Sun’s and Tron’s rhetoric afterwards, and the Tron Foundation quickly responded that “the luncheon will be postponed.”
On the afternoon of July 23, the Beijing News published an article saying that Sun Yuchen said in an interview that the Buffett lunch had been canceled and would not be postponed. Totally deny the Tron Foundation’s previous remarks about “postponing the event”.
In the evening, a report from Caixin.com took aim at Justin Sun, founder of the TRON Foundation, saying that the Mutual Finance Regulation Office had recommended that the public security organs file a case against him. At the same time, it was stated that Sun Yuchen had not been on the watch list of regulatory agencies before, but because of his relationship with Buffett and continued speculation, he came into the sight of regulatory agencies. “The talk of "border control" immediately became popular.
At this point, the TRX price suddenly collapsed.
Later, Sun Yuchen pointed out on his personal Weibo that Caixin's report was completely untrue, and said that he was fine and would meet the outside world after his condition recovered and improved. Later, he also posted relevant photos of his home in the United States on Twitter.； The Tron Foundation also responded: Sun Yuchen and Buffett both agreed to postpone the originally agreed lunch meeting. Justin Sun is currently recuperating at his home in San Francisco.
Public opinion is entangled, making the whole thing more complicated. Where is Justin Sun? Can Buffett still have lunch? What is "border control"? Why did Sun Yuchen enter the supervision list? There are various doubts to be solved, and ChainDD has also conducted multiple verifications and understandings on this.
“"Border Control" news triggers TRX market plunge
After Justin Sun was "border controlled", the price of TRON dropped rapidly after 22:30 on July 23. Binance's TRX/USDT trading pair fell to 0.022USDT shortly before 23:20, a drop of more than 8% in less than an hour. The cumulative decline in 24 hours was close to 22%.
TRX on the left, BTT on the right； Data source: Binance
Then, as Sun Yuchen refuted the rumors, TRX rebounded and rose again. Near 0:50 on the 24th, it was approaching 0.024USDT, rising by more than 9% in less than an hour. As of 10:25 on July 24, TRX quoted 0.02338 USDT, and the 24-hour decline has also retraced to around 12%.
Judging from the transaction data, in just two hours from 22:00 to 24:00 on July 23, the main net outflow of TRX was as high as 572,900 US dollars. After that, although stimulated by the good news, it once showed a net inflow trend, but the overall trend of net outflow is still showing, but the speed has slowed down.
Except for TRX, the trend of BTT, one of the tokens on the TRON mainnet, is very similar to that of TRX, and it also encountered a waterfall at almost the same time. Between 22:00 and 23:00 on July 23, the BTT/USDT trading pair on Binance Exchange fell by more than 6%, and the price hit a new low since July 18.
“Detailed explanation of "Border Control": The situation faced by Justin Sun
The core dispute stems from the word "border control." The legal force behind this concept is not widely known. Many people close to the competent authorities clearly stated to ChainDD App that Sun Yuchen has indeed been included in the "border control" list because he was involved in many financial cases due to reports from the public, and the amount of funds involved was large. However, no criminal enforcement measures have been taken against him so far, and he is still in the investigation stage. The specific matters of the police's handling of the case cannot be disclosed to the public for the time being because they are confidential.
At the same time, ChainDD also sought confirmation from many of Sun’s friends and found that Sun had been abroad recently and had not returned to China. But no one knows whether he really suffers from "kidney stones".
So what is "border control"?
Generally speaking, "border control" is what we often call border control, which usually includes restrictions on exit and entry. Restricted subjects include Chinese citizens and foreigners (people who do not have Chinese nationality). Relevant departments can implement "border control" as long as they determine that there are basic facts or reasons for suspected crimes, and there is no need to file a case. The reasons here are, for example, receiving a report and having certain internal clues and evidence. However, "border control" is not an accurate legal concept. Even the "Exit and Entry Administration Law of the People's Republic of China" does not use the term "border control".
As far as border control is concerned, there may be two levels of content for Chinese citizens. One is restrictions on leaving the country, and the other is that corresponding measures may be taken when entering the country. Lawyer Pang Lipeng, head of the Chain Law team, told Chain Dad that “border control measures are strictly implemented within the framework permitted by law and in accordance with the procedures prescribed by law. The existence of border control measures is conducive to ensuring evidence-based verification and in-place inspection and control at entry and exit ports.” When subject to border control restrictions, if the person concerned is in the country, he will inevitably be subject to restrictions when leaving the country. ； If the party concerned is abroad, the relevant departments will take supervisory measures upon entry, and the specific measures will be determined based on the circumstances of the case.
Therefore, "border control" is not a means of restricting personal freedom, nor does it mean that the person subject to "border control" has been found guilty of a crime and compulsory measures have been taken.
For example, the Huidong Court in Huizhou City previously adopted border control measures and successfully controlled a person subject to execution who was avoiding repayment abroad. He was stopped by the border police when he entered the country and successfully recovered 190,000 yuan in arrears. In this case, we adopted border control measures against the parties involved, stopped them when entering the country, and required them to repay the debt based on their avoidance of repayment.
What kind of situation will be subject to "border control"?
"Border control" that takes effect in a legal sense requires clear document notification. The "Procedural Regulations of Public Security Organs in Handling Criminal Cases" points out that if border control measures need to be taken against criminal suspects at the port, a border control object notification should be produced in accordance with relevant regulations. Once the subsequent evidence chain is formed, the "suspect" will be punished according to the corresponding illegal provisions. ； Or cancel the border control after a clear investigation. In other words, under normal circumstances, "border control" is a measure taken based on existing evidence.
It should be noted that in the legal provisions restricting Chinese citizens from leaving the country, there are clear restrictions on the identity of the parties involved. According to Article 2 of the notice of "Several Provisions on Restrictions on the Exit of Foreigners and Chinese Citizens According to the Law", only criminal suspects identified by public security agencies, national security agencies, people's courts, people's procuratorates and other agencies, or parties with other violations of the law that have not been dealt with and need to be held legally accountable will be restricted from leaving the country.
This means that both criminal cases and civil cases may involve border control issues.； Especially in criminal cases, regardless of whether they enter judicial proceedings, public security law enforcement agencies can directly implement "border control" measures based on actual case investigation needs.
Since Justin Sun is currently abroad, does "border control" still have a restrictive effect on Chinese citizens abroad? “How does "border control" work? If the subject of "border control" refuses to return to the country to cooperate with the investigation, how to take further measures?
ChainDD App consulted with many relevant legal professionals and the answer was: there is no way to impose cross-border restrictions. Given that Sun Yuchen is in San Francisco, even if the "border control" is finally implemented, he will have to wait until the next time he enters China before he will be scrutinized by regulatory authorities and restricted from leaving the country again.
At the same time, "extradition" cannot be carried out. If there are no confirmed charges and formal judicial proceedings are entered, both the parties involved and the country where they are currently located can choose not to cooperate with the investigation by the Chinese judicial authorities. During the investigation process, it is impossible to restrict the unity of the judicial agency and the parties in terms of location and time of investigation objects and case handlers.
Unless the Ministry of Public Security assigns Interpol to go abroad to negotiate with the local police, and the local police take coercive measures against the subject of the investigation. This situation is currently unlikely, and we need to see the further development of subsequent events. However, with the in-depth investigation and development of relevant cases, the situation may change at any time.
Controversies abound on the road to entrepreneurship
Tron, as an important part of Sun Yuchen's entrepreneurial landscape, has brought aura but also caused trouble from the beginning. In August 2017, Tron raised about 400 million yuan through ICO despite the doubts of "air currency". ； Just one month later, the "9.4 Ban" was issued, requiring all types of token issuance and financing activities to stop immediately. Organizations and individuals that have completed token issuance and financing should make arrangements such as liquidation and withdrawal. ； Justin Sun also stated that the token financing and withdrawal work was completed on September 20, 2017.
However, Liu Ming, the former COO of Tron, broke the news that Justin Sun had a tough attitude and refused to return the coins, but later he was forced to withdraw the funds under pressure from various parties such as cooperative institutions. He also reprimanded Justin Sun, who was abroad at the time, for not caring about his domestic situation at all and his behavior was "very bad."
On June 30 this year, the Tron Super Community App, a fund scam, was suspected to have ran away, and investors were unable to withdraw cash. In the name of TRON Super Representative, the TRON Super Community uses MLM-style promotion methods to attract users to register, deposit TRON tokens, and obtain more TRON tokens by completing the operation of attracting people. After the incident, although Sun Yuchen repeatedly warned investors on Weibo to be wary of the scam, he never directly responded to the relationship between the project and TRON. In such a scam that uses TRX as the operating medium, it is difficult for Tron and Justin Sun to stay out of the matter. According to ChainDD App, this incident was also the direct trigger of this investigation.
In addition to Tron, Sun’s other companies also face stains. In June 2018, his Peiwo App was named and exposed by Xinhua News Agency for pornography. Subsequently, Sun Yuchen stated on Weibo that Peiwo App was legal and compliant. However, when responding to the controversy and doubts, he did not respond directly. He only stated that there is some negative energy content generated by users within the platform, and as a platform, he will firmly oppose it. Later, media investigation revealed that the recommendations on the homepage of the Paiwo App still contained extremely explicit and provocative content.
Data source/Tianyancha
In addition to the above-mentioned incidents, according to Tianyancha data, Sun Yuchen's Ruibo (Beijing) Technology Co., Ltd., Peiwo Joy (Beijing) Technology Co., Ltd., and Guangzhou Peiwo Information Technology Co., Ltd. have all been included in the directory of abnormal business operations because their registered residences or business premises cannot be contacted.
The controversy surrounding Justin Sun has never stopped. Whether he was exchanging words with Sogou CEO Wang Xiaochuan or responding to Wang Sicong's taunts from afar, every controversy he faced seemed to confirm his previous remarks: "I really can't stand loneliness. When I weigh whether to do something, whether it is hot or not is very important. Someone must listen to me. Even if you scold me? ”
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