Justin Sun Mints $865M TUSD

Justin Sun's $865M TUSD minting to Tron blockchain raises questions as funds are deposited into JustLend, increasing TVL by 17%.

Sep 18, 2023 - 16:20
Sep 19, 2023 - 06:41
Justin Sun Mints $865M TUSD
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On a seemingly regular Friday afternoon, Justin Sun, an HTX board member, initiated a significant minting of the TUSD stablecoin. This event was notable not just for the amount, which was $865 million, but also for the speed at which it occurred. In less than 15 minutes, this sum was minted directly to the Tron blockchain, spread across ten transactions. 

Each minting was directed to a new address, which immediately transferred the funds to the Huobi 2 hot wallet. This rapid sequence of events was a departure from the norm, as the last TUSD mint to Tron had been a week prior.

TUSD Transactions (Source: Arkham Intelligence)

Following the deposits to the Huobi 2 address, a series of transactions totaling roughly the minted amount was directed to an address associated with Justin Sun. These funds were subsequently sent to a contract labeled "minterproxy." This contract then minted $865 million in TUSD to another address, which promptly burned the tokens. Interestingly, the TUSD burns coincided with mints of stUSDT, another cryptocurrency. In a series of transactions, $865 million stUSDT were minted to Sun's address. These were then deposited into the Tron-based lending platform, JustLend.

The deposits made by Sun now constitute half of his $1.5 billion position in JustLend. stUSDT, the staked version of USDT, currently offers a yield of 4.2%. The yield is reportedly generated from "high-grade short-term government bonds," as per the stUSDT website. Following these deposits, JustLend's total value locked (TVL) saw a 17% increase, reaching $4.63 billion.

However, the TUSD minting and subsequent transactions have raised several questions. Tether, a major name in the crypto world, clarified that stUSDT is an independent project and has no affiliation with Tether. Furthermore, there have been allegations in the past, specifically in July, where the co-founder of TUSD's parent company, Archblocks, accused Sun of acquiring TUSD through various shell companies.

Adding to the intrigue, Sun faced charges related to fraud and other securities law violations by the SEC earlier in the year. When questioned about the recent TUSD transactions, Sun stated they were related to his personal fund and were not connected to Huobi's business operations.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.