A Case Against Poloniex.com and Justin Sun


Early March 2nd, 2020 the exchange Poloniex.com began a process of embezzlement of an unknown number of user accounts funds. The funds, primarily a crypto currency called STEEM were loaded into the Poloniex account, with the amount embezzled equalling roughly 2,283,437.60 STEEM, which was locked away in a manner making it impossible for users to access their funds for trading or withdrawal from the exchange. This was done by locking up the STEEM by converting it into a form called STEEM Power (SP) which can be used to vote on things or gain influence within the STEEM blockchain.

The Poloniex exchange then proceeded to use the STEEM (SP) they have embezzled from their users accounts to cause damages to a community backed blockchain also named STEEM. The damages incurred were caused by the Poloniex exchange using this STEEM (SP) in order to elect their own delegates to run a modified version of software used to propagate the STEEM blockchain, in doing so caused severe disruptions to service availablilty across many platforms running on the STEEM blockchain, not to once again mention embezzling users funds in the process, making withdrawal of their STEEM asset impossible.

Two other crypto currency exchanges exhibited similar behaviour which included embezzlement of users STEEM currency via means of converting it in STEEM Power as Poloniex did. These exchanges are Binance.com and Huobi.com, both of which received a substantial transfer which I believe a bribe in order to get them on board for this embezzlement scam, which lead to all 3 exchanges using their ill-gotten STEEM Power, derived from embezzling their users STEEM currency to elect their own delegates on the blockchain, essentially taking it over via the custom software they had deployed.

image.png

image.png

In the attached image(A1) show a transfer from an account called "steemit" which is owned by Justin Sun, the person who also owns Poloniex.com transfering 2,000,000 STEEM to the account "deepcrypto8" which is owned by Binance.com. This is bribe money from the owner of Poloniex Justin Sun given to the owner of Binance.com in order for them to become a part of the scheme to embezzle their users STEEM funds, convert them into STEEM Power and use said STEEM Power to elect their own delegates onto the STEEM blockchain. In another attached image(A2) you will see that the top 20 consensus witnesses on the STEEM blockchain have basically the same number of voting weight propping them into power. This is 100% caused by the 3 exchanges, including Poloniex.com colluding with embezzled users funds in order to make this happen.

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In the attached image(A3) you see a 1,000,000 STEEM tranfser to huobi-pro account from an account called misterdelegation which is also owned by Poloniex.com owner Justin Sun. This is another bribe in order to get them on board to embezzle user STEEM funds, convert them into STEEM Power (which cannot be withdrawn by exchange users) and then use them to elect their own delegates.

A large amount of collusion involving the embezzlement of users STEEM funds on multiple exchanges orchestrated by Justin Sun, the owner of Poloniex.com can be seen here. Not only have the users of the Poloniex.com exchange had their STEEM currency taken and used without their consent but this has also resulted in many others experiencing similar issues, ultimately resulting in Justin Sun of Poloniex.com bribing other exchanges into embezzling others STEEM in order to take control of the STEEM blockchain.

image.png

All 3 of the exchanges mentioned in this document used their embezzled funds to set a delegate voting proxy account called dev365 which can be viewed in image(A4).

This is a criminal act. Hundreds if not thousands of users have been effected by this incident and the STEEM funds are still unavailable to be withdrawn from these exchanges, which I believe to be running by means of fractional reserves.


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Comments 43


Nice research Klye. Hopefully others can find your post.

03.03.2020 06:31
0

Thank you for the kind words.

03.03.2020 06:46
0

Yep, that is what happened.

Then there was some tweets from exchanges saying, we just thought this was another hardfork, and other weak excuses

03.03.2020 06:42
0

Yep. Atleast Binance stepped down from supporting it though.. Even though they received 2,000,000 STEEM to do so.. lol

03.03.2020 06:45
0

Add insult to injury, but blatant lies into a blockchain 'decentralized' community is taking it one step too far. So many have worked to achieve some form of success within the platform just to make a small earnings, disgusted!

Thanks for collating this information @klye

@tipu curate

03.03.2020 08:01
0

Upvoted 👌 (Mana: 10/15 - need recharge?)

03.03.2020 08:01
0

You're welcome Joan!

Yeah. Caught Justin Sun lying through his fucking teeth.. He was claiming decentralization on twitter and I dropped this link on him.

03.03.2020 08:15
0

Morons like this are becoming tiresome! Either do business ethically or move along....

This type of dirty tactic, makes cryptocurrency harder for people to adapt, trust, especially when it was originally launched as decentralized.

03.03.2020 13:12
0

Nice wrap up! Thanks! Crazy!
I could smell it earlier...
https://goldvoice.club/steem/@luca1777/can-you-trust-tron-and-justin-sun

03.03.2020 08:13
0

Yep.. Dude is shifty as hell and not to be trusted.

03.03.2020 08:15
0

That's what's up!
Charity Dinner with f.... Warren Buffet!?
https://goldvoice.club/steem/@luca1777/the-good-the-bad-and-the-ugly

03.03.2020 08:33
0

so is there legitimate legal action that can be taken? I've seen it mentioned quite a bit on twitter, would be curious to hear from some lawyers on this.

03.03.2020 08:18
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To my knowledge a formal legal complaint has been raised with the Seychelles Financial Authority but I'm not sure what further action can be taken at this time.

03.03.2020 13:41
0

My oh my, I'm sure Tron and their bot farm and those centralised exchanges have rubbed enough people the wrong way that the media would love to get a hold of info like this. Keep building the case and making noise people, give them hell while we're still here

03.03.2020 08:21
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We're actively fighting back on twitter currently to prevent them from spreading misinformation about the case.

03.03.2020 13:40
0

I saw houbi and justin tweeting some bullshit, drown em out with the truth!

03.03.2020 14:29
0

Very easy for anyone to understand. I like how you wrote it that way, even the SEC or a lawyer can understand.

03.03.2020 08:50
0

That is exactly why it was written in this format. To be used as a point of reference in case people want to get the financial governing bodies involved. ;)

03.03.2020 13:40
0

Hello!

This post has been manually curated, resteemed
and gifted with some virtually delicious cake
from the @helpiecake curation team!

Much love to you from all of us at @helpie!
Keep up the great work!

![helpiecake](https://cdn.steemitimages.com/DQmcyPLAF4HN9SfmA5mAzaDF5yfcFrq6NtVLSXsrdJ9Nt5s/helpiecake-dulce_napoleon_cake.png)

Manually curated by @solominer.


@helpie is a Community Witness.

03.03.2020 11:47
0

Thanks to @julianhorack I came over here. Appreciate the analysis. Thank you.

Oh, and !tip

03.03.2020 12:24
0

You are most welcome! Thank you for the tip!

03.03.2020 13:39
0
🎁 Hi @klye! You have received 0.1 SBD tip from @fionasfavourites!

Check out @fionasfavourites blog here and follow if you like the content :)

Sending tips with @tipU - how to guide.

03.03.2020 12:27
0

A very clear summary,

I'm encouraged to see the real T20 closing the gap rapidly on the colluded T20.

03.03.2020 13:13
0

Yep. We still have a fighting chance to retake the chain, for whatever that is worth.

03.03.2020 13:39
0

Let's keep our fingers crossed.

03.03.2020 14:34
0

Wow, some crypto news even I could understand! Amazing work and perfectly written, thank you.

03.03.2020 13:22
0

You are welcome! Glad I was able to break it down for you.

03.03.2020 13:38
0

@Klye It felt good sharing that one on Twitter. Thanks for putting it together so nicely!

03.03.2020 14:01
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You are most welcome Jacob!

03.03.2020 14:01
0

:)~ It has been quite the ride the last twenty-four hours! The damage control they are trying to spin is so obviously incriminating and highlights their true motives.

03.03.2020 14:03
0

Yep. Trying to flip the narrative on us and make themselves out to be victims.

03.03.2020 14:07
0

Yeah it is way too late for that to work though. It is kind of sad seeing his Tron trolls trying to help him.

03.03.2020 14:11
0

A tractic from from saul alynski in his rules for radicals. A communist author who dedicated the book to Lucifer.

03.03.2020 14:47
0
sheddinglight.png
@klye If you look closely you will see that today I took the 'kid gloves' off.
03.03.2020 14:09
0

This surmarises pretty much everything that's happened recently.

03.03.2020 14:33
0

It is certainly a look at what went on for sure.

03.03.2020 15:28
0

Oh well, let's see how it goes.

03.03.2020 16:06
0

The situation is starting to get some news coverage beyond the cryptosphere: https://finance.yahoo.com/news/why-crypto-care-justin-sun-210033279.html

03.03.2020 14:34
0

Thanks for sharing!

03.03.2020 15:28
0

You were my first witness to vote for, when I entered in here....
and those news... OUCH!

03.03.2020 15:25
0

Thank you for your support. <3

03.03.2020 15:26
0

Do stay strong, pls! ;)

03.03.2020 15:41
0

Good Job @klye :)

04.03.2020 14:24
0