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Whale Alert reported a transfer of 56.1 million TUSD (approx. $56.4 million) from Justin Sun to Binance.
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Binance CEO CZ warned Sun against using the funds to acquire LaunchPool Sui tokens, meant for retail users.
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Sun clarified that the transfer aimed to facilitate market-making and enhance liquidity and the trading volume for TUSD.
In a recent development in the world of cryptocurrency, a significant transaction of 56,100,000 TUSD (equivalent to $56,444,454) was transferred from Justin Sun, the founder of TRON and owner of Huobi Global, to Binance, the largest cryptocurrency exchange in the world. The news was brought to light by Whale Alert, a blockchain tracking and analytics platform, through a post on Twitter.
Justin Sun Clears the Air on Hefty Transfer
Binance’s CEO, Changpeng Zhao “CZ”, responded to the tweet, stating that his team had warned Justin Sun against using the transferred funds to participate in Binance’s LaunchPool Sui token event. According to Zhao, LaunchPool is intended as an airdrop for retail users, rather than being monopolized by a few wealthy individuals. However, he acknowledged the transparency provided by blockchain technology as a positive aspect of the situation.
Justin Sun replied to Zhao’s tweet, clarifying the purpose behind the transfer. He explained that TRON DAO Venture, a partner market maker for TUSD, deposited the funds with the primary objective of facilitating market-making between leading TUSD exchanges. This was done in an effort to enhance liquidity and trading volume, rather than to participate in exchange promotions.
Sun added that within a few hours, their market maker had achieved a total trading volume of $40 million, contributing to the stability of TUSD’s price. Unfortunately, some team members were not fully aware of the intended purpose for these funds, and inadvertently used a portion of them to participate in exchange campaigns. Upon realizing the mistake, Sun and his team contacted the exchange and arranged for a full refund of the funds.