Justin Sun Mints $815 Mln in True USD (TUSD) Raising Concerns About Stablecoin Collateralization

Tron founder and Huobi board member Justin SUN has come under fire in the crypto community after minting $815 mln worth of the True USD ($TUSD) stablecoin in a series of 10 transactions. After minting on September 16, the funds were sent to two Huobi hot wallets, after which they were sent to a wallet address managed by Justin Sun. The funds were later transferred to an unlabelled contract address known as a “minterproxy.”

From "minterproxy", a total of $865 mln was transferred to another address, where the tokens were eventually burned and replaced with $865 mln worth of stUSDT. As a result of this move, 865 mln stUSDT was minted and sent to one of Justin Sun's wallet addresses. According to analytics firm Arkam Intelligence, stUSDT tokens were later deposited into JustLend, a decentralized lending protocol on the Tron network.

The TVL of the DeFi protocol increased by 21% after the deposit. JustLend's TVL stands at $4.585 bln, up 25.63% in the last seven days, according to DefiLlama. The crypto community criticized Justin Sun for the lack of transparency and integrity of the recent transaction. The collateral of the $TUSD stablecoin is being scrutinized as $815 mln appears to have been minted out of thin air.

Image: Coincu