Justin Sun to Reverse $56M Binance Transfer After CZ Warns Against Potential SUI Token Grab

Tron founder Justin Sun tweeted on Monday that he has arranged a full refund of a $56 million transfer to exchange platform Binance after a warning from the latter against a potential token grab of the new SUI token.

After the substantial transfer made in TrueUSD (TUSD) got flagged by Whale Alert early Monday, Binance CEO Changpeng Zhao took to Twitter to say his platform has warned Sun it will take action if he used any of the funds to buy up large amounts of SUI tokens from Binance’s Launchpool.

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

The SUI token, the native token of layer1 blockchain Sui, is set to take place evvel the mainnet goes live on May 3. On Sunday, Binance announced the SUI token will be available via its Launchpool, which allows users to stake their crypto assets to provide funds into a liquidity pool and get rewards in return.

Sun replied to Zhao’s post saying his team was not fully aware of the “intended purpose” of the funds, which he says is used 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, we immediately contacted the exchange team and arranged for a full refund of the funds,” Sun tweeted.

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Update (May 1, 11:15 UTC): Adds detail throughout.

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