Binance CEO Changpeng Zhao has warned Justin Sun, the founder of TRON, that the exchange operator would take action against him if he attempted to farm SUI tokens.
Sun transferred over 115 million TrueUSD (TUSD) stablecoins on Binance, which are one of two tokens that can be staked on Binance Launchpool to farm SUI. Yield farming is the process of earning tokens by providing liquidity to DeFi protocols.
Zhao noticed the huge transfers of TUSD and tweeted that Binance would “take action” against Sun if he used any of those tokens to grab SUI tokens.
Sun clarified that the TUSD transfer was made to provide liquidity but admitted that some of these stablecoins were “inadvertently” used to participate in exchange campaigns that would have yielded SUI token rewards.
Sun quickly apologized and reversed the action. He said that Tron DAO Ventures deposited the tokens to Binance for market-making purposes.
“Regrettably, some of our team members were not fully aware of the intended purpose for these funds and inadvertently used a portion of them to participate in exchange campaigns,” Sun tweeted. “Upon realizing this error, we immediately contacted the exchange team and arranged for a full refund of the funds.”
Binance Launchpool was created in September 2020 during the rise of DeFi. The platform allows users to earn newly launched tokens in return for staking BNB and other tokens. Launchpool is different from Binance Launchpad, which is essentially a platform for purchasing new tokens.
This is the first time that Zhao has publicly made such a threat against Sun.