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Tron [TRX] is no longer decentralized, states ex-CTO Lucien Chen following exit from network




Tron is no longer decentralised, states co-founder and ex-CTO Lucien Chen in departure blog
Source: Pixabay

Lucien Chen, the former CTO of Tron had announced his departure from the Tron network via a May 10 Medium post. The post stated that Chen would “rebuild a new TRON” citing several reasons for the need of a truly decentralized network, which he claimed Tron was not.

An expert in Big Data, Chen joined Tron in October 2017 following stints at Tencent and Alibaba already in his repertoire. On joining Tron, Chen affirmed the development of Tron in the online entertainment realm using blockchain technology and was responsible to curate the “coordination plan of TRON’s global technical team and arrange all project development schedules”.

Chen highlighted several reasons for leaving Tron, the prime one being that the network did not adhere to the decentralization principle completely. In his words:

“As a technical man, I feel very sad that the TRON has departed from the faith of “decentralize the web”.”

Adding on to his point of lack of decentralization in the network process, he stated that in the “DPOS and Super Representative node” there was a problem of “centralized voting”. Secondly, Chen attested that he was the builder of the “technology platform of TRON” and that the network was not associated to the internet.

Speaking about one of the keys of the Tron ecosystem, the decentralization applications [DApps], Chen stated:

“The TRON ecosystem is still far from commercial applications that users can really apply to. Bad money drives out good. Thus, DAPP in TRON is basically the gambling and funding project.”

He added that the Justin Sun-led network did not adhere to the “original intention of the blockchain”, which is primed on the principle of decentralization, which Tron was not following. Three key centralized elements within the network, according to the ex-CTO are token distribution, super representatives, the code development, as well as the organisation of the TRX community, citing lack of diversified voices.

Chen remarked:

“The whole project has developed into a monetary tool without any “decentralize the web” spirit.”

Not taking any names, Chen lamented to see the Tron project “become like this” adding that the “dreams and visions” mentioned to him by Sun “have been ruined”.

The Medium post stated that Chen will launch his own ecosystem titled “Volume Network”. He added that this ecosystem will “hope to rebuild a new TRON returning to the spirit of the blockchain”.

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Huobi, Bitfinex, and other exchanges allegedly linked to laundering/mixing of Bitcoins




Huobi, Bitfinex, and other exchanges are allegedly linked in laundering/mixing of Bitcoins
Source: Unsplash

On 19 May, 2019, @Whale_Alert tweeted a transaction of 2000 BTCs between Bitfinex and an unknown wallet, which after in-depth research by a Twitter user, confirmed that it was linked with wash-trading, mixing and laundering of funds. The funds circulated over various exchanges like Bitfinex, Binance, Huobi, Coinbase, and others, raise serious questions regarding AML laws and more.

The flagged transaction was sent from 1HL5rZWw5rGzFAB1mThEMxwazEBtWigs7B to two distinct addresses.

The Twitter user, @Proofofresearch, flagged this transaction and revealed the exchanges involved [directly or indirectly]. The user tweeted,

The user flagged a few addresses in the clusters which sent a significant amount of funds, shown in the image attached below.

Source: Twitter | CryptoMedication

The entity 145631092, as seen in the above chart, the funds sent by Huobi from this cluster ended on July 21, 2017. Another wallet “17hf5H8D6Yc4B7zHEg3orAtKn7Jhme7Adx”, linked to having transactions with Huobi has one particular transaction that stands out as it has an op_code named “People! help!”, which was transferred on March 30, 2019.

Source: Smartbit

The wallet address “19V5joogtZCCj3YWcP9pNT8eKLSZybc1Kq” has only four transactions in total. Upon checking the previous transaction for this address, the transaction with hash “bee4795db198230d6baad2e9dbba42b597c635b2471101641cce99e1ff0e91e4” stands out, since it is linked to darknet market places, the user tweeted.

Source: Twitter | CryptoMedication

Further, the address “3M1QVCjXn38AUdUxbLCH4WUZc1ai72ZKgr” that sent funds to the above-mentioned wallet, has a strong connection to darknet market places like the Hydra Market place.

Source: Twitter | Cryptomedication

The source of these funds was directly linked again with Hydra Market place, with the user tweeting,

The Twitter user further alleged that the addresses linked to these clusters were attached to fraud and some user[s] was “selling accounts at Coinbase/Huobi/Bittrex/Binance.” The Twitter user also urged the compliance team of the respective exchanges to close these flagged accounts ASAP.

The user added that all the funds linked to darknet market places were later deposited in Huobi exchange, which according to the user, gets mixed by Huobi.

Additionally, the user added,

“There are zero customers involved in any of these transactions at this point. That much is obvious. These addresses are not functioning as customer deposit addresses. That’s a guarantee. Funds go to Binance/OKex/Poloniex/… By FAR, Okex is the most frequent recipient of funds from these Huobi-controlled addresses. Please keep in mind that these are not deposit addresses. These are addresses where Huobi is literally mixing the funds and sending them to other exchanges for some reason.”

One particular address connected to Bitfinex in this fiasco, “1LSgEKji3ZoGdvzBgkcJMej74iBd38fySb,” has received 1 million Bitcoins, according to the user. The user added,

“As stated before, Binance/Coinbase/Bitfinex/Huobi/Bittrex/Coinbase/”Bitbank”/Bithumb/OKex are all pals in this laundering scheme together. They mix and mash funds and operate in a symbiotic fashion – replenishing stores when necessary… In this case, Huobi’s hands are dripping if there’s such a thing as catching someone ‘red-handed’.”

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