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Tron founder Justin Sun has claimed that the $815 million in TUSD stablecoin minted, swapped, and deposited into the JustLend platform were his personal funds, stirring up controversy.
Tron founder and Huobi board member Justin Sun has been the subject of criticism in the crypto community after minting $815 million worth of True USD (TUSD) stablecoin in a series of 10 transactions.
Following the minting on Sept. 16, the funds were sent to two Huobi hot wallets, after which they were sent to a Justin Sun-managed wallet address. The funds were later moved to an unlabelled contract address known as “minterproxy.”
From Minterproxy, a total of $865 million was moved to another address, where the tokens were eventually burnt and replaced by $865 million in stUSDT. The move minted the 865 million stUSDT and sent them to one of Sun’s wallet addresses.
According to the on-chain analytics firm Arkam Intelligence, the stUSDT tokens were later deposited to JustLend – a decentralized lending protocol on the Tron network.
The total value locked (TVL) of the decentralized finance (DeFi) protocol increased by 21% after the deposit. According to data from DefiLlama, JustLend has a TVL of $4.585 billion, with an increase of 25.63% over the last seven days.
Crypto Community Reacts Sun’s To TUSD Minting
The crypto community has criticized Justin Sun for the recent transaction’s lack of transparency and integrity. The collateralization of the TUSD stablecoin is being scrutinized as $815 million appeared to be minted out of thin air.
A Bitcoin Magazine contributor, Dylan LeClair, has directly questioned Sun, asking what and where the TUSD reserves are. In July, the founder of Archblock (the parent company of TUSD) accused Sun of acquiring the stablecoin through various shell companies.
A Tether spokesperson has also clarified that the stablecoin issuer is not involved with Justin Sun, calling the project independent.
Sun Defends the Collateralization of TUSD
The Tron founder has responded to the accusations. Responding to LeClair, Sun claimed that the collateral of the TUSD stablecoin is in treasury bills. However, Sun did not provide further information on the nature or amount of treasury bills held by the stablecoin issuer.
Sun also argued that the entire transaction was drawn from his personal financial dealings and bore no connection to the operations of Huobi.