• Thu. May 30th, 2024

Justin Sun Under Fire, As $800 Million Stablecoin Transaction Faces Investigation

Maria Bartiromo

ByMaria Bartiromo

Sep 17, 2023

Justin Sun, a popular millionaire trader and blockchain entrepreneur who serves on the board of HTX, has come under fire for his extensive engagement in stablecoin transactions. Sun’s most recent minting and movement of TUSD, (a less popular stablecoin), reaching $800 million, has recently sparked concerns regarding the reasons for and ramifications of such a sizable transaction.

The transaction started when Justin Sun started a huge TUSD token minting, which resulted in an influx of the stablecoin worth more than $800 million into the cryptocurrency ecosystem. The routing of these freshly created tokens to an unnamed contract named “minterproxy” caused an uproar in the community.

The $865 million in TUSD was then transferred from the “minterproxy” contract to another address, where the tokens were later burnt. All investigation kept insisting that Sun took part in creating and transferring $865 million worth of stUSDT tokens to his address.

According to data from Tronscan, this significant volume of stablecoins is essential to Sun’s strong $1.5 billion position on the JustLend platform. Such a position emphasizes Justin Sun’s substantial visibility and influence within the decentralized finance (DeFi) community.

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The reasons for these massive stablecoin transactions are still unknown; hence, they have sparked a debate in the cryptocurrency community. In the cryptocurrency ecosystem, stablecoins like TUSD are frequently used for liquidity provision, trading, and financial services. However, skepticism and interest have been aroused by the size and complexity of Sun’s transactions.

Cryptocurrency Community Claim Story Could Be A Hoax

Some in the cryptocurrency industry believe Sun’s activities could be a part of a larger plan to sway and manipulate the DeFi market or to strengthen his positions. It was also gathered that Sun’s staked USDT stablecoin product yielded 4.2% in profit. Data from the stUSDT website claimed that the yield had originated from some high-volume government short-term bond.

The United States users who have access to the stUSDT website are advised to leverage the geo-fencing of United States IP addresses. Due to Mr. Sun’s recent deposit, JustLend has recorded a 17% increase in its Total Value Locked (TVL) to hit $4.63 billion, which the company says is very significant.

Amid this recent controversy surrounding this huge stablecoin transaction, an (anonymous) Tether representative has come to clarify the story. According to the representative, the stUSDT operates independently and is not affiliated with Tether in any way.

While addressing key investors, in one of his recent public appearances, Justine Sun addressed BlockWork, a financial media outlet, stating that his major transactions were linked to his fund and are not connected to the activities of Huobi businesses. Earlier story has it that immediately the funds arrived the Huobi 2 wallet, 9 transactions received the TUSD sent to it an address believed to belong to Mr. Sun.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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