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.
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.”
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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