Tron’s Justin Sun Calls $56 Million Binance Transfer an ‘Oversight’

Justin Sun said the TRON DAO had initiated a refund after some members inadvertently transferred funds to Binance’s Launchpool.

Tron founder Justin Sun apologized for a supposed error after Binance CEO Changpeng Zhao said the exchange would “take action against” funds transferred to snap up SUI tokens.

A $56 million trueUSD (TUSD) transaction flagged by Whale Alert caught Zhao’s attention on Monday, leading the Binance CEO to make it clear that the exchange wouldn’t stand for an entity using these funds to buy SUI tokens from Binance’s Launchpool.

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

“Binance LaunchPool are meant as air drops for our retail users, not just for a few whales,” Zhao said in a tweet.

For context, the SUI token is native to the Layer 1 blockchain Sui, created by former employees at Meta’s crypto wallet division. The SUI token will be released on the mainnet on May 3 via token sales on crypto exchanges Bybit, OKX and KuCoin. On Sunday, Binance announced that it plans to make SUI available to farm on its Launchpool in exchange for BNB and TUSD staking. 

Not long after this announcement, a sizable transfer was made to the Binance Launchpool from a wallet address tied to Sun.

The Tron founder responded to Zhao’s warning on Twitter, saying that the funds were “inadvertently” transferred by team members who were not fully aware of their intended purpose. 

“As a partner market maker for TUSD, TRON DAO Venture’s primary objective in depositing TUSD is to facilitate market-making between leading TUSD exchanges, thereby enhancing liquidity and trading volume, rather than participating in any exchange promotions,” explained Sun.

“Upon realizing this error, we immediately contacted the exchange team and arranged for a full refund of the funds,” he added, apologizing for the transfer which he dubbed an “oversight.”

Lmfao. Caught red handed😂😂

— Devchart 👨🏻‍💻 (@devchart) May 1, 2023

Binance confirmed that it had refunded the farmed SUI to the TUSD pool on Binance. The returned rewards amounted to 278,752 SUI tokens, which the exchange said would reach the pool at midnight UTC on May 2.