Justin Sun Mints $800M in a Lesser-Known Stablecoin

TheMorningCrypto Desk
TheMorningCrypto Desk Published on September 16, 2023 08:59 PM

Justin Sun has generated $800 million in a relatively obscure stablecoin. The stablecoin in question sees limited usage compared to more mainstream cryptocurrencies.

Justin Sun Mints $800M in a Lesser-Known Stablecoin
Source: Pexels

During Friday's afternoon session, HTX board member Justin Sun initiated a substantial issuance of the relatively underutilized stablecoin TUSD, grabbing the attention of traders as more than $815 million flooded into circulation within a brief 15-minute span.

Commencing at 11:45 am ET, data obtained from Tronscan indicates that $815 million worth of TUSD was freshly created and added directly to the Tron blockchain through a series of ten transactions.

Each of these newly minted TUSD tokens was transferred to a unique address, and shortly thereafter, these funds were promptly sent to the Huobi 2 hot wallet. Before this noteworthy sequence of transactions, the Tron blockchain hadn't witnessed any TUSD minting activities for seven days.

Justin Sun Generates $800M in Lesser-Known Stablecoin Supply

Following these deposits, a sequence of nine transactions originating from the Huobi 2 address transferred around $815 million worth of TUSD to an address managed by Justin Sun, a prominent figure in the cryptocurrency space. Subsequently, these funds were routed to an unnamed contract labelled as minterproxy, which then directed $865 million in TUSD to another address for token burning.

It's worth noting that the timing of TUSD burns closely coincided with the minting of stUSDT. Over ten transactions, Justin Sun received approximately $865 million worth of stUSDT tokens, which he subsequently deposited onto the Tron-based lending platform JustLend through six transactions. These recent deposits have now contributed to half of Sun's $1.5 billion position on JustLend, according to Tronscan data.

stUSDT is a staked USDT product with a 4.2% yield, purportedly backed by real-world assets like high-grade short-term government bonds, as indicated on the stUSDT website (accessible through a proxy due to geofencing).

As a result of these transactions, JustLend's total value locked (TVL) saw a 17% increase, reaching $4.63 billion, according to DeFiLlama data, a Tether spokesperson clarified that stUSDT is an independent project unaffiliated with Tether.

Furthermore, it's worth mentioning that Sun had previously faced allegations of acquiring TUSD through various shell companies, as claimed by the co-founder of TUSD's parent company, Archblocks, back in July. Sun, who was charged with fraud and securities law violations by the SEC in March, emphasized that these recent transactions were related to his fund and not associated with Huobi's business operations.


Australian Bank Progresses to AUD Stablecoin After Chainlink Test

Despite The Hype, PayPal's PYUSD Stablecoin Faces Limited Adoption



Gaining A Full License, Coinbase Will Increase Its Cryptocurrency Payment Services In Singapore
Gaining A Full License, Coinbase Will Increase Its Cryptocurrency Payment Services In Singapore
October 03, 2023 12:38 AM