The Tron Foundation is once over again mired in controversy over an as yet unverified accusation that it secured a ~$ii 1000000 grant from the United States' federal relief programme for small businesses hitting by the pandemic downturn.

The official WeChat account of a Beijing-based subsidiary, "Tron," appears to have circulated the merits on May 5:

Screenshot of a purported WeChat post from a Beijing-based subsidiary

Screenshot of a purported WeChat post from a Beijing-based subsidiary. Source: WeChat

The WeChat post claims that the Tron Foundation in the U.Due south. successfully applied for a loan from the Paycheck Protection Program (PPP), which was rolled out by the Small-scale Business Administration (SBA) as part of the federal government's $two trillion coronavirus relief packet.

The WeChat post indicates that "the get-go batch of RMB 17 one thousand thousand in subsidies has arrived, and the second batch of cash assistance will also be issued in the near futurity."

PPP recipients surrounded by controversy

PPP was launched in early April with the aim of providing pocket-sized and medium firms with depression-interest, forgivable loans to meet their urgent liquidity needs for covering payrolls and other expenses.

The administration of President Donald Trump has drawn increasing levels of criticism for PPP's design. Many claim that information technology caters to the needs of large corporations — some with ties to known Trump reelection lobbyists —  over the Main Street business it was supposed to protect.

The loopholes in the fine print of PPP that take enabled market incumbents to greenbacks in are of particular concern as the SBA's $660 billion loan program volition eventually run out — potentially leaving smaller and genuinely struggling firms past the wayside.

This backdrop has informed much of the customs's response to news of the Tron Foundation's apparent movement to tap into federal funds.

Bryce Weiner, the CEO of a Los Angeles start-upward who has contributed to the New York Times' recent coverage of PPP-related controversies, responded to news of the claim on May 7:

"This is *exactly* the kind of sh*t the @nytimes was talking virtually in my interview. This isn't even an American company. If information technology is a company, it's not decentralized and TRON is a security."

Weiner'due south outrage over the apparent handout of "seven figures to the 14th largest cryptocurrency" was echoed past many of the other respondents to a tweet from Matthew Graham — CEO of Beijing-based blockchain investment firm Sino Global Capital — who shared and translated the original WeChat message.

More than forgiving commenters pointed to Sunday'due south San Francisco offices and his apparent entitlement to tap payroll protection for employees in the U.Due south.

As of printing fourth dimension, Tron has not replied to Cointelegraph'south request for comment.