CZ Warns Justin Sun Over $56 Million Transfer To Binance

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CZ Warns Justin Sun Over $56 Million Transfer To Binance
  • Binance CEO Changpeng Zhao has issued a warning to Justin Sun regarding a $56 million transfer to his exchange.
  • Sun transferred 56 million TUSD to Binance earlier today, likely to participate in the SUI airdrop.
  • The Tron founder clarified that the transfer was done to keep the price of TUSD stable.

Binance Chief Changpeng Zhao has called out Justin Sun for transferring a whopping $56 million to his crypto exchange. The funds are believed to have been transferred in preparation for the upcoming SUI token airdrop, which has not sat quite right with Zhao. The CEO has issued a warning to Sun for the same.

Justin Sun’s transfer came to light earlier today after Whale Alert on Twitter revealed that the Tron Founder had transferred 56.1 million TUSD ($56.4 million) to Binance. Crypto Twitter quickly concluded that the funds were meant to farm the imminent airdrop of the SUI token. Binance is currently letting its users farm SUI by staking BNB and TUSD on its platform.

Changpeng Zhao took to Twitter to share the warning given to Sun shortly after his controversial transaction was made public. Zhao’s team reportedly told the Tron founder that if he uses any of the TUSD in question to farm the LaunchPool SUI token, they will “take action against it.”. “Binance LaunchPool are meant as airdrops for our retail users, not just for a few whales,” Zhao added.

In his defense, Justin Sun claimed that by making the multi-million dollar deposit in Binance, the Tron DAO Venture was just doing its duty as a cooperative market maker of TUSD. According to him, the deposit was to level the price difference of major TUSD and increase the liquidity of pending orders and trading volume. He clarified that the funds were not intended for participating in the SUI airdrop.

Sun acknowledged that some of his colleagues used part of the 56 million TUSD to participate in the airdrop, but claimed that it was only because they “did not understand the purpose of the funds.” He further revealed that his team had contacted Binance to refund the exchange activity funds in full.