Justin Sun to Reverse $56M Binance Transfer After CZ Warns Against Potential SUI Token Grab
In a recent turn of events, Tron founder Justin Sun has arranged for a full refund of a $56 million transfer made to Binance. This move came after the latter warned against the potential token grab of the new SUI token, set to take place on May 3 via Binance’s Launchpool. The warning came after the substantial transfer made in TrueUSD (TUSD) got flagged by Whale Alert early Monday.
Binance CEO Changpeng Zhao took to Twitter to warn Sun that action would be taken if any of the funds were used to buy up large amounts of SUI tokens from the Launchpool. Zhao emphasized that the Launchpool was meant as airdrops for retail users and not just a few whales
In response to Zhao’s post, Sun claimed that his team was not fully aware of the intended purpose of the funds. According to Sun, the funds were meant to facilitate market-making between leading TUSD exchanges, thereby enhancing liquidity and trading volume, rather than participating in any exchange promotions.
Upon realizing this error, Sun’s team immediately contacted the exchange team and arranged for a full refund of the funds. Sun took to Twitter to confirm the refund and stated that his team would ensure such an error never happens again.
The SUI token, the native token of layer1 blockchain Sui, is set to take place on May 3. The token will be available via Binance’s Launchpool, which allows users to stake their crypto assets to provide funds into a liquidity pool and get rewards in return.
The incident highlights the importance of understanding the intended use of funds and tokens in the cryptocurrency world. It also emphasizes the need for caution when making substantial transfers, especially during times of high market activity.
As the cryptocurrency market continues to grow and evolve, it is essential for investors and traders to stay vigilant and informed to avoid potential pitfalls and losses.
