CZ Warns Justin Sun Over $115.8M Transfer to Misuse Binance Launchpool

Changpeng Zhao (CZ), the CEO of the leading crypto exchange Binance, warned Tron’s founder Justin Sun that he should refrain from acting as a crypto whale in the Binance launchpool. In this case, the cryptocurrency involved was the SUI token.

Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will “take action against it”. SMH.

Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.

On the bright side, blockchains are transparent… https://t.co/8Xs1oXjfVd

— CZ ???? Binance (@cz_binance) May 1, 2023

What Is SUI Token?

On April 30th, Binance announced the launch of Sui as the 33rd project to feature on the Binance Launchpool. Sui (SUI) is a delegated proof-of-stake (DPoS) layer-1 blockchain network focused on the move programming language.

To claim SUI tokens, users need to stake BNB and TUSD in separate pools. The pools will be opened for farming on May 1st and 2nd. Binance will proceed to list the asset on its platform for trading after it meets a predetermined threshold.

Justin Sun to Partake in SUI Farming Process

Blockchain data earlier today revealed that Justin Sun transferred $56.4 million and $59.4 million worth of TUSD in two transactions to Binance. This caught CZ’s attention, causing him to publish the tweet quoted earlier.

CZ’s concern is that Sun will use the funds to buy a large portion of the SUI tokens, giving him a whale position in the asset. CZ added that the launchpool is designed as an airdrop initiative for retail users.

Justin Sun wasted no time in replying to CZ’s post, exonerating himself from the matter. He mentioned that the Tron DAO venture’s primary purpose for depositing that huge amount of TUSD into Binance is for the facilitation of market making. 

Since Tron is one of the market makers for the TUSD stablecoin, Sun stated that the funds will enhance liquidity and trading volume for the asset, thereby “contributing to the stability of TUSD’s price.” The Tron boss also stated that he has begun processing a full refund.

“[S]ome of our team members were not fully aware of the intended purpose for these funds and inadvertently used a portion of them to participate in exchange campaigns [like the Binance Launchpool]. Upon realizing this error, we immediately contacted the exchange team and arranged for a full refund of the funds.”