Binance CEO Changpeng ‘CZ’ Zhao said the exchange would prevent crypto entrepreneur Justin Sun from farming Sui tokens with his $56.1 million True USD (TUSD) deposit.

On May 1, Whale Alert reported that Sun had made the deposit mentioned above to Binance, prompting speculations that he was trying to farm the SUI token through the exchange’s LaunchPool.

However, CZ allayed the community’s fears that Binance had warned Sun that it would “take action” against him if he tried to farm the tokens. According to the CEO, the exchange’s LaunchPool is meant as airdrops for retail users, not just for a few whales.

The Binance Sui LaunchPool allows users to stake TUSD and BNB to farm SUI tokens over the next two days. As of press time, $558.8 million TUSD and 9.2 million BNB tokens were staked in the pool.

Sun issues response

Sun responded that Tron DAO Venture made the transfer in its role 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.

Meanwhile, despite the claim that the funds were not meant for participating in activities on exchanges, it appears that part of the funds has been staked on SUI LaunchPool.

Sun stated that this was a mistake by colleagues that did not understand the purpose of the funds. “We have contacted the exchange as soon as possible to refund the exchange activity funds in full. We apologize for this mistake,” he added.

However, not everyone believes Sun; some think he is only backtracking after being called out publicly. Sun is smart money that has used his access to funds to make very profitable trades. For instance, he capitalized on the USDC depeg to profit around $3 million.

The post Binance to take action against Justin Sun if he farms SUI token appeared first on CryptoSlate.

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Filed under: Bitcoin - @ May 1, 2023 11:24 am