Binance Threatens Justin Sun Over SUI Token Farming
- Binance CEO CZ stated the exchange would take action against Justin Sun if he farms SUI token with $56.1M TUSD deposit.
- $558.8M TUSD and 9.2M BNB tokens were staked in Binance Sui LaunchPool.
- Sun responded that the deposit was meant to increase TUSD liquidity but some suspect he is backtracking after being called out publicly.
Binance CEO Changpeng ‘CZ’ Zhao made a statement that the exchange would take steps to prevent crypto entrepreneur Justin Sun from farming Sui tokens with his $56.1 million True USD (TUSD) deposit.
This announcement followed Sun’s deposit to Binance on May 1, which prompted speculations that he was attempting to farm the SUI token through Binance’s LaunchPool.
However, CZ came forward to allay the community’s concerns, stating that the exchange’s LaunchPool is designed for airdrops for retail users, not just for whales. According to the CEO, Binance would take action against Sun if the latter attempted to farm the tokens.
The Binance Sui LaunchPool offers users the opportunity to stake TUSD and BNB to farm SUI tokens over the next two days. Reports show that $558.8 million TUSD and 9.2 million BNB tokens were staked in the pool as of press time.
Sun responded to CZ’s statement, explaining that Tron DAO Venture made the transfer as a cooperative market maker for TUSD. He added that the deposit was meant to level the TUSD price difference and increase the liquidity of pending orders and trading volume. Although Sun claimed that the funds were not intended for participating in activities on exchanges, it was later discovered that part of the funds had been staked on the SUI LaunchPool. Sun stated that this was a mistake by colleagues who did not understand the purpose of the funds and that the funds had already been refunded in full.
Despite Sun’s explanation, some believe that he is only backtracking after being called out publicly. However, Sun has made profitable trades in the past, such as capitalizing on the USDC depeg to profit around $3 million.
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