Justin Sun says Poloniex is 'used solely by the boss himself,' raising wash trading questions

Justin Sun says Poloniex is used only by 'the boss himself'

Justin Sun, the creator of the TRON blockchain and a crypto billionaire, posted on X that his exchange Poloniex is now "the world's only exchange used solely by the boss himself."

Protos reported the post and said that Sun, "while perhaps being tongue-in-cheek," appeared to admit that most of the trading volume on Poloniex comes from him.

Protos also said the only way to create nearly $1 billion in volume on an exchange would be to trade with yourself. That practice is called wash trading.

Key points from the report

• Sun's post on X described Poloniex as an exchange used only by "the boss himself."
• Protos said this reads as an apparent admission that most of Poloniex's volume comes from Sun.
• Wash trading — trading with yourself — is considered illegal in most countries because it can be used to move the price of an asset, but Protos said it is rarely prosecuted unless it can be proven.
• The U.S. Securities and Exchange Commission (SEC) once alleged that Sun wash-traded TRX, the token linked to TRON. Protos said that case has since been dropped.

What wash trading means and why it is restricted

Wash trading happens when a trader buys and sells an asset with himself or herself. The trades create the appearance of activity on a market, but no real change in ownership takes place.

According to Protos, most countries treat wash trading as illegal because it can be used to manipulate an asset's price. The report added that such cases are rarely prosecuted unless the activity can be verifiably proven.

The SEC's earlier allegation against Sun

Protos noted that the SEC previously alleged Sun had engaged in wash trading of TRX. The report said the case has since been dropped. The article did not provide details on when the case ended or what the SEC said about the dismissal.

A false shooting rumor spread on Chinese social media

Over the weekend, Protos reported, some people in mainland China spread a fake screenshot claiming that media outlets in the United Arab Emirates had reported Sun had been shot in Dubai. Protos described the screenshot as false. The report said the claim spread quickly, with some people in China worried and others reacting in a celebratory way.

Sun responded on Sunday with a post on X saying "All is well" along with a smiling sunglasses emoji, according to Protos.

Where Sun has been traveling

Protos said Sun has been moving between Chicago, where he is promoting TRON ETFs getting listed, and Singapore, where he is set to attend a conference this week. An ETF is a fund that trades on a stock exchange and can track the price of an asset.

What is confirmed

Sun did publish the post describing Poloniex as an exchange used solely by "the boss himself," and he did post "All is well" on Sunday after the Dubai rumor circulated. The SEC did previously allege that Sun wash-traded TRX in a case that Protos says was dropped.

What is still unclear

It is not confirmed that wash trading actually took place on Poloniex. Protos itself said Sun may have been joking, and it did not present verified trade data. The article also did not identify who created the fake Dubai screenshot or confirm where the near $1 billion volume figure came from.

Why it matters

Reported trading volume helps people judge how active and liquid an exchange is. If volume is generated by traders trading with themselves, that picture can be misleading. Because regulators in most countries view wash trading as illegal, statements that appear to describe it tend to draw scrutiny, especially from a well-known figure in the crypto industry.

Sources

• Protos