TRON CEO promises community BNB integration
Tron CEO Justin Sun has made plans to integrate BNB into the TRON and BNB chain, even as he faces charges from US regulators.
Today, the Tron CEO promised the Tron community that he would get Binance’s BNB coin on the TRON blockchain.
This chirping came after the TRON community asked Binance and Zhao to make BNB available on the TRON network.
Social launchpad MaskPad, which allows crypto projects to raise money through a social media presence, commented that BNB’s tools would complement the privacy and speed of TRON.
Sun, CEO of peer-to-peer file sharing service BitTorrent, launched the TRON blockchain in September 2017 to decentralize the internet. TRON is a smart contract blockchain that uses the TRONIX token as a unit of account. The blockchain uses delegated proof-of-stake as the consensus mechanism.
Holders of TRONIX can vote for block producers, who receive the token as a reward for confirming transactions. The rewards are distributed among those who voted for the block producer.
Making BNB available on TRX without the inherent security risks of cross-chain bridges would require the BNB token to operate on top of a multi-chain framework such as that created by Centre, the issuer of the USDC stablecoin.
Binance announced support for its Binance-peg BUSD token on the TRON network late last year. Users can deposit and withdraw the Binance peg version of BUSD.
Zhao founded Binance in mid-2017 after developing trading and exchange systems for the Tokyo Stock Exchange and Bloomberg. The exchange was among the first to conduct an initial coin offering (ICO) for its BNB coin in China. The company moved out of Shanghai after the Chinese government banned ICOs. After the Japanese government prevented Binance from selling cryptoassets to citizens in 2018, Binance stopped disclosing its physical location.
SEC charges against CEO of TRON
On March 22, 2023, the US Securities and Exchange Commission accused Sun, Tron Foundation, BitTorrent Foundation, Rainberry Inc and several celebrities of selling TRX and BTT tokens as unregistered securities to the public.
The SEC also alleged that Sun used the three companies to conduct TRX wash trading. He allegedly did this to simulate genuine investor interest in the asset. The SEC also accused celebrities Austin Mahone and DeAndre Cortex Way of promoting TRX and BTT without disclosing compensation.
The SEC has asked the courts to prevent Sun, his companies and the celebrities from violating the Securities Act and any offer or sale of securities. In addition, Mahone and Way should be barred from receiving further compensation. They should also be ordered to disgorge profits from securities law violations. The defendant must also pay additional civil and financial penalties.
CFTC Lawsuit Against Binance
The US Commodity Futures Trading Commission has sued Zhao, former Binance Chief Compliance Officer Samuel Lim, Binance Holdings Limited, Binance Holdings (IE) Limited and Binance (Services) Holdings Limited for offering US entities access to its derivatives trading desk without registering as a derivatives exchange with the agency.
The CFTC has accused Binance of encouraging top US clients to use virtual private networks to circumvent geographic restrictions that Binance had on its international platform.
It also claims that Binance had lax controls to prevent anti-money laundering and terrorist activity on its platform.
The CFTC has asked the courts to grant injunctions preventing Binance, Zhao and Lim from violating the Commodity Exchange Act. The court should also compel them to provide compensation to customers or investors whose funds were used to break the law.
Binance and TRON Cases Will Define Crypto’s Future
Both Sun and Zhao crypto moguls are likely to face a legal battle that US regulators will use to set an example for industry players who do not comply with existing securities and commodities laws.
The SEC has filed several lawsuits against crypto projects for offering unregistered securities, including Ripple Labs and the decentralized media platform LBRY.
If found guilty, Binance will potentially have to pay billions of dollars in damages. Legal fees are likely to be significant, and Binance may find it difficult to find banking partners and market makers.
Integrating BNB on TRON is likely to strengthen Binance’s position in the market. It will also pave the way for BNB’s greater cross-chain benefit in a decentralized internet.
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