ZachXBT reveals Tron hosts a $5–10B “Black U market” tied to Lazarus Group and OTC trades, raising concerns over its public listing plans.
ZachXBT, a blockchain investigator, has recently disclosed that the Lazarus Group and other minor OTC markets actively utilize the Tron blockchain network. This market is called the $50-$10 billion Black U market.
He also cautioned that the crypto industry is experiencing a “crime supercycle.”
He attributed this increase to the lack of accountability for bad actors, lenient regulations, and political involvement in meme coins.
The Tron Group announced its intention to go public through a reverse merger with SRM Entertainment at the same time as this attack on the Tron blockchain.
Upon listing, the company will operate as “Tron Inc.” and intends to establish its TRX reserves.
Is Tron Blockchain Preferred Platform For Dishonest Cryptocurrency Actors?
According to blockchain investigator ZachXBT, major players, such as the notorious Lazarus Group from North Korea, are receiving assistance from small OTC brokers and notorious laundering groups to transfer stolen funds.
He specifically referenced these OTC brokers’ active involvement in transferring funds from significant hacks involving DMM Bitcoin, Bybit, and WazirX.
According to ZachXBT, the “Black U market” on the Tron network is valued at $5–10 billion, with a substantial portion of its value unattributed.
In the interim, the blockchain investigator has criticized specific DeFi protocols for passively profiting from stolen funds, as it is reported that over 50% of their activity is sourced from illicit sources.
ZachXBT asserts that influencers can endorse crypto schemes without incurring any consequences.
He also noted that legal systems are experiencing a delay as courts are increasingly siding with smart contract exploiters due to outdated laws.
Will Plans For Public Listings Face Opposition?
Justin Sun, the founder of Tron, is preparing to make a significant move by bringing his company public in the United States through a reverse merger with SRM Entertainment.
Sun is opting for a SPAC merger, which is a more expedited method of going public than traditional IPOs, despite the recent surge in the popularity of crypto IPOs.
Nevertheless, the merger plans may be jeopardized if the regulators uncover any anomalous activities on the platform.
The native crypto TRX has experienced a decline in value due to this announcement, which coincided with the broader market correction.
The daily trading volume has collapsed by over 50% to $727 million, and the TRX price is currently trading at $0.2733, more than 5% lower.
