Whale Alert analysts have recorded a transfer of 115.1 million TrueUSD (TUSD) from Tron founder Justin Sun to the Binance cryptocurrency exchange.
After the transaction was completed, the TUSD rate, paired with the stablecoin USDT, jumped almost 20% at the moment, but quickly returned to previous levels.
The situation caused outrage within the crypto community. Some users have speculated that Sun is using these funds to farm native Sui Network (SUI) tokens.
— Christian Becze (@CristianBecze) May 1, 2023
“It’s not fair, there should be a betting limit per person for the Sui Network. And people will still ask why the rich get richer,” wrote one commenter.
Later, the head of Binance, Changpeng Zhao, said that the exchange team is ready to take action against the founder of Tron if he uses these funds to farm SUI.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will “take action against it”. SMH.
Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.
On the bright side, blockchains are transparent… https://t.co/8Xs1oXjfVd
— CZ 🔶 Binance (@cz_binance) May 1, 2023
“Binance LaunchPool is for retail users, not just a few whales. On the other hand, blockchains are transparent,” Zhao said.
In response, Justin Sun wrote that the TUSD transfer was made to provide liquidity. However, due to misunderstandings within the company, some errors arose.
USD的合作做市商TRON DAO Venture价格稳定起到了作用，确实因部分同事不了解该资金用途，使用部分资金参与了交易所活动，我们已第一时间联络交易所，对于交易所活动资金进行全额退款，对此错误我们深表歉意！望周知！
— HE Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
“The funds were sent to maintain the course, but not all those involved were aware of their purpose and unintentionally used the assets in exchange campaigns. Upon realizing the mistake, we immediately contacted the exchange team and arranged for a full refund,” he explained.
Recall that in March SEC accused Sun and three of his companies of an unregistered offering of securities in the form of TRX and BTT tokens.
In April, the regulator took the founder of Tron to court. He called all the arguments of the Commission unfounded.
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