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In the words of Justin Sun, “Regrettably, some of our team members were not fully aware of the intended purpose for these [$TUSD] funds and inadvertently used a portion of them to participate in exchange campaigns.”
TRON (TRX) founder Justin Sun agreed to reverse a transaction involving $56M TrueUSD tokens sent to Binance after receiving a warning from the exchange’s CEO.
On May 1, blockchain tracker Whale Alert reported that Justin Sun transferred $56.44M in stablecoin TrueUSD ($TUSD) to a wallet associated with Binance.
🚨 🚨 🚨 56,100,000 #$TUSD (56,444,454 USD) transferred from Justin Sun to #Binancehttps://t.co/OWFJNQ3oXO
— Whale Alert (@whale_alert) May 1, 2023
Subsequently, Binance CEO Changpeng Zhao warned Sun that their team “will take action” against him if he uses the deposited $TUSD tokens to farm $SUI on Binance Launchpool. This is because Binance allows only retail investors to receive airdrops from Binance Launchpool.
CZ made these statements less than a day after Binance added support for retail investors to farm $SUI tokens by staking their BNB or $TUSD assets on its staking product, Binance Launchpool.
Soon, Justin Sun tweeted that the intention behind the $56M transfer was to increase the liquidity of pending $TUSD orders. According to him, the transaction was made by some team members who accidentally used a portion of the $TUSD assets to participate in exchange campaigns.
The founder of TRON further revealed that they have agreed to a full refund of the funds, adding,
“Upon realizing this error, we immediately contacted the exchange team and arranged for a full refund of the funds.”