Adam Cochran, a partner at CEHV and an influential figure in the crypto industry, has launched a fiery accusation against Justin Sun, the founder of Tron. Cochran alleges that Sun has been involved in some strange and seemingly deceptive cryptocurrency dealings that have raised more than just a few eyebrows in the crypto community.
Magic with Minting and Burning
Cochran’s tweets lay out a fascinating trail of Sun’s cryptocurrency transactions that seem to tell a peculiar story. The claim is that Sun’s address on Tron minted $62 million TUSD, which is a stablecoin pegged to the US dollar. Then, Sun allegedly withdrew $50 million in USDT (another stablecoin) from Huobi, a cryptocurrency exchange, and deposited this amount into Bitfinex, another exchange platform.
The tale doesn’t stop here. Sun reportedly burned $50 million TUSD, and then moved $50 million USDT and $12 million TUSD into JustLend, a Tron-based decentralized lending platform.
Cochran finds no legitimate reason for the instant minting and burning of TUSD, unless the objective was to momentarily inflate the balance for a snapshot or to offset debt. Moreover, he speculates that these funds might be unbacked, adding a hint of suspicion to the whole affair.
In addition, Cochran’s tweet points out that Sun appears to be borrowing heavily against assets on Huobi through JustLend. He further accuses Sun of creating TUSD out of thin air and using Huobi and Poloniex – another cryptocurrency exchange – as personal piggy banks for borrowing against.
Relation with CZ and TUSD
The situation gets even murkier as Cochran points out the close business relationship between Justin Sun and Changpeng Zhao, also known as CZ, the CEO of Binance, a leading cryptocurrency exchange. CZ has allegedly seen Sun’s dealings and continues to allow promotions involving TUSD and accepts it as collateral on his exchange. This certainly adds a layer of intrigue to the unfolding drama.
Cochran reveals that CZ has offered “voluntary termination” deals to various departments within Binance. The staff members are invited to resign immediately, sign a new non-disclosure agreement, and receive a three-month severance package. Cochran insinuates that such a move is quite unusual, particularly after Binance had already undergone significant cuts.
