Three weeks after the U.S. SEC accused Justin Sun of fraudulently inflating the price of Tron (TRX), Binance.US, the American arm of the world’s largest digital asset exchange Binance, has announced that it will delist the token from its trading platform.
The news comes hot on the heels of baseless rumours that Tron founder Justin Sun has been arrested in Hong Kong.
TRX In Crisis
It’s yet another blow to the Tron camp.
Binance.US has announced its plans to suspend Tron (TRX) trading. The token will be booted from the Binance.US site on April 18. While trading and deposits will be stopped altogether, withdrawals for TRX will remain open. The exchange clarified that it would continue to support TRC-20 USDT and USDC issued on the TRON network.
Per Binance.US, the decision to distance itself from Tron was spurred by a routine review process, during which the exchange considers various factors like trading volume, liquidity, and regulatory standing in the United States.
Other factors that could lead to delisting include fraud and unethical behaviour related to a token.
“We operate in a rapidly evolving industry, and our digital asset monitoring process is designed to be responsive to market and regulatory developments. When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary,” the Binance.US announcement reads.
TRX, which is currently the seventeenth largest cryptocurrency by market cap, saw a sharp decline after the news emerged, dropping to as low as $0.062 before slightly recovering to $0.064 at publication time.
The move to delist TRX comes after rumours started swirling on Twitter claiming that Tron founder Justin Sun had been apprehended in Hong Kong. The eccentric crypto entrepreneur quickly denied the claims on Twitter. Sun used a coded response system borrowed from fellow crypto chief Changpeng Zhao to urge his followers to “ignore FUD.”
Sun, his three wholly-owned companies, and a roster of celebrities are also currently embroiled in an SEC lawsuit accusing them of offering, selling, and touting unregistered securities.