Crypto Twitter Raises Eyebrows as Justin Sun Moves Funds in 24hrs

The founder of the TRON blockchain, Justin Sun, has been moving huge funds across various crypto businesses. The crypto community has begun raising eyebrows at the unusual transactions.

Today, Sun transferred $100 million to the largest crypto exchange Binance. TRON’s founder moved out $45 million from Binance to stablecoin issuers Paxos and Circle. Chinese reporter, Collin Wu, claimed the $45 million was probably for cash out.

Binance CEO Changpeng Zhao commented that Sun’s recent $100 inflow was perhaps part of deploying BUSD on the Tron network (TRX) or cross-chain swaps.

This is part of deploying BUSD on TRON, I think. Cross-chain swaps. Not sure of the details. Not directly handling it myself. https://t.co/DF32yAFxpI

— CZ ? Binance (@cz_binance) December 13, 2022

However, the founder of TRX later tweeted in Chinese, clarifying that the recent distribution of cash between exchanges was simply standard business collaboration and did not reflect any market judgment or speculation.

近期的资金交易所间调配，仅是正常的业务往来合作，不代表任何对于市场的判断与猜测，未来我们还将于交易所有更多合作，共同推进行业的进步与发展。山长水远，我们一起前行！

— H.E. Justin Sun?????? (@justinsuntron) December 13, 2022

Yesterday, Sun deployed nearly one million dollars into the ailing USDD, assuring the crypto community that the Stablecoin is in good condition with a 200% over-collateralized ratio. USDD lost its peg on November 9 and is yet to return to its $1 peg.

However, crypto enthusiasts did not see the recent action as convincing, given that the stablecoin trades at $0.975. Furthermore, there are speculations that the USDD’s supposed over-collateralized reserve comprises of illiquid assets in burning contracts and loans.

According to a prior allegation by Twitter user Lookonchain, 99% of the TRX tokens in the USDD reserve were unavailable, suggesting that the actual collateral ratio was just 50% rather than the 200% over-collateralized claim.

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