Circle insiders say Justin Sun is leading the investment consortium taking over Poloniex

TRON founder Justin Sun is heavily involved in the "Asian investment group" that is backing Poloniex as it spins out from Circle, several Circle employees told The Block under the condition of anonymity. 

Less than two years after being acquired by Circle, cryptocurrency exchange Poloniex announced on Friday that it is leaving its parent company and will form into a new firm named Polo Digital Assets. 

According to sources, Justin Sun is leading the Asian investment consortium involved in the spinoff and has made an appearance at Circle’s Boston headquarters yesterday and today. Poloniex employees were also allegedly offered an opportunity to join Poloniex rather than to stay at Circle, said a source. 

TRON Foundation has not responded to The Block's request for comments. Circle has declined to comment. 

In a blog post, the exchange notes that it has “the backing of a major investment group," although it does not identify any investors. On Twitter, Circle also stated that Poloniex will be an independent company "with backing from an Asian investment group." 

Circle acquired Poloniex in 2018 for $400 million. Meanwhile, the firm has been trying to raise funds without much success. In May, The Block reported that the firm had slashed its fundraising goal from $250 million to $150 million. It’s unclear if they have raised any additional funds.