Crypto Billionaire Justin Sun is Cautioned by Binance Not to Grab SUI Tokens

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Last Updated on May 1, 2023 by Bitfinsider

Changpeng Zhao, the CEO of Binance, today warned Justin Sun, a fellow cryptocurrency billionaire, that the exchange operator would take legal action against him if Sun attempted to farm SUI tokens. Sun then swiftly apologized and undid what he called his careless actions.

According to tweets from Whale Alert, Sun transferred over 115 million TrueUSD (TUSD) stablecoins on Binance earlier today. According to a recent announcement from Binance, TUSD is one of two tokens, along with BNB, that can be staked on the Binance Launchpool to farm SUI, the native currency of Mysten Labs’ Sui Network. Yield farming is the practice of generating tokens by making DeFi protocols more liquid.

The CEO of Binance, Changpeng “CZ” Zhao, took notice of the significant TUSD transactions and tweeted that Binance will “take action against it” if Sun utilized any of those tokens to acquire the Sui tokens offered via Launchpool.

Zhao added, “On the bright side, blockchains are transparent. Binance Launchpool is meant as airdrops for our retail users, not just for a few whales.”

Sun quickly clarified that the purpose of the TUSD transfer was to offer liquidity. However, he went on to say that some of these stablecoins were “inadvertently” used to take part in exchange campaigns, which would have resulted in SUI token rewards, and that the action will be reversed.

Sun said that the tokens were sent to Binance for market-making purposes by Tron DAO Ventures, a TUSD partner market maker. Sun tweeted, “Unfortunately, some of our team members were not fully aware of the intended purpose for these funds and unintentionally used some of them to participate in exchange campaigns.” “As soon as we realized our mistake, we contacted the exchange team and made arrangements to have the money refunded in full.”

Sun continued, “We sincerely apologize for this oversight.

During the ascent of DeFi in September 2020, Binance Launchpool was established. By staking BNB and other tokens, users of the site can acquire recently issued tokens. Launchpool is distinct from Binance Launchpad, which essentially serves as a marketplace for new token purchases.

It seems like this is the first time Zhao has openly threatened Sun in this way. Over the years, the two executives have developed a close bond. It was reported that through Sun that this incident was “only a miscommunication.”

Sun added, “I texted CZ, and he understands it.

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