Allegations of Using Deposits from Huobi and Poloniex

Tron co-founder Justin Sun is facing further allegations of engaging in questionable tactics to get TUSD out of “nowhere”, using deposits from two exchanges, Huobi and Poloniex.

Recent on-chain data from Sun’s verified address, “TT2T17…U9N”, on Tron reveals that it minted $62 million in TUSD on July 21, 2023, withdrawing $50 million USDT from Huobi before proceeding to deposit $50 million USD to Bitfinex.

After that, he burned NT$50M and added NT$50M and NT$12M to JustLend, the top DeFi protocol on Tron. TUSD is a stablecoin that tracks the value of the US dollar.

The instant TUSD mint and burn raised concerns about Sun’s intent. Twitter observers said there was no clear explanation from Sun for Mint TUSD before it was immediately burned.

Speculations on Sun’s Actions

Adam Cochran, an audio cryptocurrency analyst, speculates that unless Justin Sun uses “phantom balances to temporarily capture or cancel debts that are not backed up,” which means the controversial co-founder of Tron may be using Poloniex and Huobi assets to mint TUSD “out of the blue.”

Cochran also appears to be criticizing Justin Sun for what he claims is using Huobi and Poloniex as two of his “piggy banks” where user assets are allegedly “invested” in JustLend to borrow more coins.

Response from Justin Sun

Justin Sun has not responded to these allegations.

Previous Allegations against Sun

In March 2023, the Securities and Exchange Commission (SEC) charged Sun and three of his companies – Tron Foundation Limited and BitTorrent Foundation Ltd. and Rainberry Inc. (formerly BitTorrent) – for allegedly selling unregistered securities of TRX and BitTorrent’s BTT.

Sun and his companies have also been accused of market manipulation with a massive laundering business and orchestrating a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation.