Abstract : On July 23, Justin Sun said that he had been treated in the hospital for a sudden kidney stones illness and canceled the lunch meeting with Buffett. According to the exclusive report of Caixin, Justin Sun, with controversial personal entrepreneurial experience, has been under border control under the environment of continuing to rectify the Internet financial chaos.
On the morning of July 23, Justin Sun said that he had been treated in the hospital for a sudden kidney stones illness and canceled the lunch meeting with Buffett. As planned previously, Justin Sun will have lunch with Buffett and seven other invited guests at a Michelin-starred restaurant called Quince at Jackson Square in San Francisco two days later.
According to the exclusive report of Caixin, Justin Sun, with controversial personal entrepreneurial experience, has been under border control under the environment of continuing to rectify the Internet financial chaos. Recently, Office of the National Internet Financial Risk Rehabilitation Group has suggested that the public security organization to investigate Justin Sun’s suspicions of illegal fund-raising, money laundering, prostitution and drug-related issues.
The last trip abroad of Justin Sun was on July 1, 2019. He appeared in Taipei to attend the Asian Blockchain Summit 2019. After that, Justin Sun also had dinner with some peers.
Mike Dudas, founder and CEO of The Block, said on July 23 on Twitter that "I guess that as long as Buffett agrees to eat outside the United States, Justin Sun's kidney stones will recover soon." Mike Dudas then deleted this tweet. Why is it difficult for Justin Sun to travel to the United States to meet Buffett? Except for his health reasons, is there any other reasons?
At the time of its cancellation of the appointment, there are still several questions to be answered: its current main business project Peiwo is suspected of pornographic transactions; the TRON project is mainly based on gambling applications, and users in China can directly access it. As the leader of these two companies and a controversial figure in the digital currency collection means, Justin Sun will meet many difficulties when traveling to the United States. Can Justin Sun have this 30 million meal before the above questions are answered clearly?
Where does the money come from?
It cost $4.56 million to have dinner with Buffett. Why can Justin Sun, a man who was born after 1990 and started his business “from scratch” make it? People are also curious - where does Justin Sun’s huge amount of money come from?
Justin Sun previously said in an interview that it was made by the legitimate income of Bittorrent (Sun's company).
The TRON project was launched as early as August 2017, and it has raised about 400 million yuan by ICO with the suspicion of“Air Coin”. However, on September 4, 2017, the central bank and other seven ministries and commissions issued the “Announcement on Preventing the Risk of Subsidy Issuance Financing” (hereinafter referred to as the “9.4 Announcement”), requiring all types of token financing activities to be stopped immediately. Organizations and individuals who have completed the financing of token issuance should make arrangements such as retreat. Justin Sun, who was overseas at that time, originally said that he refused to retreat the money, but later he was forced to retreat from the fundraising by various agencies and other pressures.
“Peiwo” involved in prostitution and TRON involved in gambling
Peiwo and TRON are Justin Sun’s two major projects currently.
After successfully winning the audition of lunch with Buffett, Justin Sun said that the misunderstanding from the outside world is because of the others’ ignorance towards his business. He said, "Only 5% of the TRON business is based in mainland China, and Peiwo APP is also legal. The remaining 95% of the business covers the global mainstream digital currency TRON, 3 million users and 500 DAPP. BitTorrent, the world's largest decentralized transmission network, with a billion installed capacity and 100 million active ones, is mainly located in more than 100 countries around the world. Maybe you can't see it, but it doesn't mean it doesn't exist."
However, is Peiwo legal? As early as June last year, the Xinhua News Agency pointed Peiwo when surveying the live broadcast platform involved in prostitution. The anchors encouraged audiences to see flirting contents when buying gifts for them.
The 21st Century Business Herald reporter noticed that the Peiwo app is currently unavailable in the app store and the webpage can not be opened. However, its social media platform account said that users can ask for the application download address by private message. Some netizens said this application has been always filled with sex information and even paid prostitution services. It was not until the announcement of Buffett lunch that the inappropriate content began to be cleared.
In addition, in the TRON public chain projects, the top-ranked “sweepstakes” occupy the vast majority. The so-called "sweepstakes" are actually gambling games and can be directly accessed in China.
As for BitTorrent, people in the industry bluntly said, “It is the accumulation before the acquisition, and has little to do with Justin Sun.”
He Tao, deputy editor-in-chief of Zhizu GQ magazine, had an in-depth interview with Justin Sun in 2015. In a recent radio chat program, He Tao mentioned that in the game rules of entrepreneurial financing, even if the angel wheel or the A round investors found that the entrepreneur had some problems, they will cover the truth and seek for someone else to take it, rather than disclose it. When the snowball rolled to a certain level and a viable business is acquired, it is collectively washed away. This is the story of a Chinese version of "Bad Blood" (a blood test unicorn company scam that is valued at nearly $10 billion), and Justin Sun is well versed in it.
In Justin Sun's Weibo comments, there are messages to ask for reimbursement from investors who lost money, and supports from investors although they also lost money. We can often hear the cases that some people sell their houses to buy tokens and go into a huge loss which even breaks their family. The "Buffett lunch" under the auction has been heated news for nearly two months. However, will Justin Sun’s story continue to be played in accordance with the script written at the beginning?