Tron chief Justin Sun, accused by the Securities and Exchange Commission (SEC) of using a network of entities under his control to manipulate the price of crypto tokens he’s connected to, has had to explain a large transfer of TrueUSD (TUSD) to Binance that appeared to be intended to take advantage of a Binance promotion of the SUI token.
Binance offered an opportunity on its LaunchPool product for people to earn SUI by staking Binance Coin (BNB) or TUSD. Shortly after this, a large transfer of TUSD from Justin Sun to Binance was flagged on Twitter. Changpeng Zhao (CZ), the CEO of Binance, warned the firm will “take action” if Sun tries to claim the tokens.
Sun tweeted to explain that they’re a “partner market maker” for TUSD with a goal of “enhancing liquidity and trading volume.” Unfortunately, “some of our team members were not fully aware of the intended purpose” and “used a portion of them to participate in exchange campaigns,” they said.
Sun claims that after recognizing the mistake, they were able to arrange for a full refund of the funds connected to this misuse of the SUI LaunchPool, and apologized to Zhao for the mistake.
Sun was previously listed as the “Asia Market Advisor” on TrueUSD’s website. However, in a previous statement to Protos on March 22, Archblock (formerly TrustToken Inc., the California-based firm that is a a service provider for TrueUSD) said it has no current direct business relationship with Sun.
Protos has reached out to Archblock and Sun to clarify how the crypto entrepreneur is a “partner market maker” without holding a business relationship with the firm, and will update if we hear back.
Update 17:27 PM UTC, May 1: Archblock reiterated in its response to Protos that it holds no business relationship with Justin Sun. “Our business relationship is with Techteryx,” its spokesperson said.
Update 15:25 UTC, May 2: A previous version of this article described Archblock as the owner of TrueUSD, Archblock is a service provider for TrueUSD and TrueUSD is owned by Techteryx.