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Justin Sun Transfers $56.4M TUSD to Binance, CZ Warns Whales Over Misuse of SUI Airdrop

AA News - Mandy Williams 2023-05-01 20:15

Tron founder and crypto entrepreneur Justin Sun transferred 56.1 million True USD (TUSD) worth over $56.4 million to crypto exchange Binance on Monday morning, sparking rumors about his intention to farm the just-released Sui (SUI) tokens on the Binance LaunchPool.

Shortly after Whale Alert flagged the transaction, Binance’s CEO Changpeng Zhao (CZ) disclosed that the exchange’s team had warned Sun to refrain from using any part of the TUSD deposit to grab the SUI rewards on the platform.

SUI Farming on Binance LaunchPool

On Sunday, Binance announced that users could farm SUI, the native token of Sui Network, a delegated proof-of-stake (DPoS) layer-1 blockchain based on the move programming language, on its launchpool.

Binance LaunchPool allows traders to stake their crypto assets in liquidity pools of emerging blockchain projects to earn rewards calculated daily. Sui is the 33rd project on the launchpool, and users are allowed to stake their Binance Coin (BNB) and TUSD in separate pools to farm SUI for two days, starting May 1st, 2023

Binance will then list the token on its trading platform across different trading pairs, including SUI/BTC, SUI/USDT, SUI/TUSD, and SUI/BNB, if the token’s liquidity meets the required amount. The exchange also promised investors zero maker fees on the SUI/TUSD trading pair until further notice.

While commenting on Sun’s actions, CZ insisted that the Binance Launchpool is meant as airdrops for the exchange’s retail users, not just a few whales. He further noted that the Binance team was prepared to take action against the Tron founder if he used his deposited assets to collect the Sui tokens during the farming period

Sun Apologizes

A few minutes after CZ’s disclosure, Sun apologized for the oversight caused by the transfer and clarified the situation. He said the Tron decentralized autonomous organization (DAO) deposited TUSD to facilitate market-making between exchanges and enhance liquidity and trading volume.

However, some Tron team members were unaware of the DAO’s primary objective and used the funds to participate in exchange promotions and campaigns.

Regrettably, some of our 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 this error, we immediately contacted the exchange team and arranged for a full refund…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023

The post Justin Sun Transfers $56.4M TUSD to Binance, CZ Warns Whales Over Misuse of SUI Airdrop appeared first on CryptoPotato.