Whale Alert analysts recorded a transfer of 115.1 million TrueUSD (TUSD) from Tron founder Justin Sun to the cryptocurrency exchange Binance.
After the transaction, the TUSD in the stablecoin USDT pair jumped by almost 20% at one point, but quickly returned to previous levels.
The move sparked outrage in the crypto community. Some users speculated that Sun was using the funds to farm the native tokens of the Sui Network (SUI).
@cz_binance @binance this is not fair , there should be a limit of staking per person for @SuiNetwork farming , and people will ask why rich people getting richer ..
— Cristian Becze (@CristianBecze) May 1, 2023
“This is unfair; there should be a per-person staking limit for Sui Network. And people will ask why the rich get richer,” wrote one of the commentators.
Later, Binance chief Changpeng Zhao said the exchange team was prepared to take action against the Tron founder if he uses the 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 intended for retail users, not just for a few whales. On the other hand, blockchains are transparent,” Zhao noted.
In response, Sun said the TUSD transfer was made to provide liquidity. However, due to internal misunderstandings, there were some errors.
经查，作为TUSD的合作做市商TRON DAO Venture过去数小时已经累计完成4000万美元的交易量，对于保持TUSD的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！
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
“The funds were directed to support the price, but not all involved were aware of their purpose and inadvertently used the assets in exchange campaigns. Recognising the error, we immediately contacted the exchange team and arranged a full refund,” he explained.
In March, the U.S. Securities and Exchange Commission accused Sun and three of his companies of an unregistered securities offering in the form of TRX and BTT tokens.
In April, the regulator summoned the founder of Tron to court. He said the Commission’s arguments were unfounded.