TLDR
- Justin Sun’s Tron Group pursues public company status via SRM Entertainment reverse merger
- Blockchain detective ZachXBT exposes alleged $5-10 billion criminal money network on platform
- Tron network handled $1.38 billion in stablecoin transactions during past week
- North Korean Lazarus Group allegedly uses platform for major hack fund laundering
- Token value declined 5% as criminal activity claims surface during IPO process
Justin Sun’s Tron Group has submitted documentation for public company status in America. The filing uses a reverse merger strategy with already-listed SRM Entertainment on Nasdaq.
Dominari Securities supports the transaction with $210 million in TRX token reserves. The broker-dealer has historical ties to former President Donald Trump’s business network.
The emerging public entity will operate under the name “Tron Inc” following completion. This structure bypasses traditional IPO timelines through existing public company acquisition.
Criminal activity allegations emerged simultaneously with the public listing news. Prominent blockchain detective ZachXBT published detailed findings about illicit platform usage.
The investigator documented a massive underground financial network operating through Tron infrastructure. This system allegedly processes between $5 billion and $10 billion in illegal transactions.
ZachXBT identified the North Korean Lazarus Group as a primary network user. The state-sponsored hacking organization reportedly launders stolen cryptocurrency through platform services.
Small over-the-counter trading desks facilitate these illegal transfers according to the investigation. These brokers helped process funds from major exchange breaches.
The detective cited specific incidents involving DMM Bitcoin, Bybit, and WazirX platforms. Stolen assets from these hacks allegedly moved through Tron’s infrastructure.
Platform Shows Mixed Performance Signals
Recent network data reveals substantial legitimate trading activity alongside alleged criminal usage. Stablecoin transfers totaled $1.38 billion over seven consecutive days.
USDT and USDC comprised the majority of these digital dollar movements. The volume surge positioned Tron above Avalanche in transaction throughput rankings.
IntoTheBlock analytics show steady growth in Active Addresses per dollar metrics. This measurement indicates increased user engagement across retail and institutional segments.
Market sentiment data from CryptoQuant supports continued buyer interest. The 90-day Cumulative Volume Delta shows purchasing pressure exceeds selling activity.
🚨 Tron – $TRX is making moves:
$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 reservesAll-time high incoming? 👀 $TRX#Tron #TRX #Crypto #IPO #USDT pic.twitter.com/6D7WLRIjNJ
— Wise Crypto (@WiseCrypto_) June 17, 2025
Regulatory Obstacles Emerge
ZachXBT warned that criminal network allegations could derail public listing plans. Federal regulators typically scrutinize companies with potential illegal activity exposure.
The investigator described current conditions as a “crime supercycle” affecting cryptocurrency markets. He blamed weak oversight and political meme coin involvement for enabling bad actors.
Legal frameworks remain outdated for addressing smart contract exploitation according to the detective. Court decisions increasingly favor technical loophole exploitation over victim protection.
TRX token pricing reflected negative market reaction to the criminal allegations. The asset dropped to $0.2733 representing a decline exceeding 5%.
Trading volume contracted by more than half to $727 million during the same period. This reduction suggests investor uncertainty about platform regulatory risks.
The merger timeline depends on regulatory approval and standard due diligence completion. Federal agencies may delay or block the transaction pending criminal activity investigation.
Sun’s team has not publicly addressed the money laundering allegations. The company continues pursuing the public listing despite the controversy.
Market observers expect increased scrutiny from multiple regulatory bodies. The combination of IPO ambitions and criminal claims creates unprecedented oversight challenges.
