- Tron’s IPO plans face scrutiny as laundering links and timing raise red flags
- Over half of Tron-based DeFi activity may stem from tainted or illicit capital
- Legal gaps and influencer fraud deepen mistrust in crypto’s core principles
The crypto industry stands at a dangerous crossroads as Tron Group pushes forward with an ambitious U.S. public listing. While the firm pursues a reverse merger with SRM Entertainment to fast-track its IPO, blockchain sleuths raise troubling alarms.
Tron, under Justin Sun’s leadership, is now under scrutiny for allegedly being a central player in a growing multi-billion-dollar laundering scheme. According to Wise Crypto data, as regulators review the $210 million TRX-backed listing plan, the timing couldn’t be more precarious.
🚨 Tron – $TRX is making moves:
— Wise Crypto (@WiseCrypto_) June 17, 2025
$210M reverse merger to go public on Nasdaq
TRX up 10% 📈
$55.7M in 30-day revenue
$694.5B USDT transfers in May 💸
Aligning with Eric Trump & adopting MicroStrategy-style reserves
All-time high incoming? 👀 $TRX#Tron #TRX #Crypto #IPO #USDT pic.twitter.com/6D7WLRIjNJ
Black Market Thriving in Plain Sight
According to independent blockchain investigator ZachXBT, the so-called “Black U market” on Tron is estimated to be worth $5–10 billion. This underground system reportedly serves laundering groups and hostile state actors like North Korea’s Lazarus Group.
With growing involvement from small OTC brokers, stolen funds from high-profile hacks including DMM Bitcoin, Bybit, and WazirX are being washed through Tron-based protocols.
Significantly, this illicit flow appears to be hiding in plain sight. Analysts believe over 50% of the activity on certain DeFi platforms comes from tainted capital. Despite this, some teams continue to collect fees without taking action, essentially monetizing crime. Besides fueling illicit finance, this behavior is corroding trust in the legitimacy of decentralized finance.
The crime supercycle is indeed very real.
— ZachXBT (@zachxbt) June 18, 2025
While it’s true the industry has historically been ripe for abuse it has noticeably increased since politicians launched meme coins and numerous court cases were dropped further enabling the behavior.
Laundering groups and small OTC… pic.twitter.com/jzQRTYeChO
Courts, Influencers, and a Broken System
Meanwhile, outdated legal systems are providing cover for exploiters. Courts have sided with smart contract hackers in several recent rulings, allowing them to walk away unpunished. This legal gray area is enabling more bad actors to operate with impunity.
Additionally, influencers and key opinion leaders who shill scams face no accountability. Many promote questionable projects, extract money from their communities, and disappear, all without consequences. With meme coins being launched by politically connected individuals, including lawmakers, the credibility of the space continues to erode.
Dangerous Shift in Sentiment
Tron’s price has also taken a hit amid growing concerns. As of press time trading at $0.2688, TRX fell 3.64% in the past 24 hours and 7.66% over the week. Although stablecoin activity on Tron remains strong, the criminal allegations cast a long shadow over network growth.
More importantly, a dangerous sentiment is creeping in. As rules bend and bad actors thrive, many feel justified in extracting value while they can. This shift from idealism to opportunism could define the next chapter of crypto.
