News

Binance Threatens Justin Sun Over SUI Token Farming

Key Points:

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.