Justin Sun Requests Full Refund for $56 Million Token Transfer on Binance, Citing Oversight Issues

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Mon, 25 Sep 2023, 05:05 PM
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Justin Sun Requests Full Refund for $56 Million Token Transfer on Binance, Citing Oversight Issues

Source: Justin Sun on Twitter.

Tue, 02 May 2023, 09:35 am UTC

Tron founder Justin Sun has issued an apology to Binance CEO Changpeng "CZ" Zhao after the latter warned his followers that Sun might use Binance's Launchpool platform to farm large amounts of a new blockchain token named Sui.

CZ posted a tweet on Monday, warning Sun that Binance would take action against him if he used the funds to acquire Sui tokens on Launchpool. This tweet caught CZ's attention as it came from @whale_alert, a Twitter account that monitors large blockchain transactions.

CZ further explained that Binance's Launchpool platform is for retail users, and not just for a few whales. The Launchpool platform lets Binance users farm new project tokens and earn rewards by staking tokens like BNB and dollar-pegged stablecoin TrueUSD (TUSD) in staking pools on the platform.

Twenty minutes later, Sun apologized to CZ, stating that the transfer was an "oversight" from TRON DAO's market making partnership with TUSD and was not an attempt to hoard Sui tokens. He also claimed that "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."

Sun then announced that the DAO had arranged for a full refund of the funds with Binance. CZ has yet to tweet an update on the situation, and Binance did not respond to Decrypt's request for comment.

Sui network is a layer-1 blockchain created by Mysten Labs, a startup founded by former executives of Meta's crypto division. It is a proof-of-stake blockchain built using the open-source Move programming language, originally developed for Meta's abandoned Diem crypto project.

According to reports, the Sui network is scheduled to go live on Wednesday at 12pm UTC, and Binance is facilitating the launch by making Sui the 33rd project to debut on its Launchpool platform.

Users have staked nearly ten million BNB (over $3 billion) in Sui's BNB Launchpool and half a billion in TUSD's pool. Once Sui's liquidity meets Binance's requirements, the exchange will list the token under the SUI/BTC, SUI/USDT, SUI/TUSD, and SUI/BNB trading pairs.

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