Justin Sun Mints $815M in TrueUSD, Raising Concerns Over Stablecoin Collateralization

2y ago•

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Tron founder Justin Sun has claimed that the $815 million in TUSD stablecoin minted, swapped, and deposited into the JustLend platform were his personal funds, stirring up controversy.

Tron founder and Huobi board member Justin Sun has been the subject of criticism in the crypto community after minting $815 million worth of True USD (TUSD) stablecoin in a series of 10 transactions.

Following the minting on Sept. 16, the funds were sent to two Huobi hot wallets, after which they were sent to a Justin Sun-managed wallet address . The funds were later moved to an unlabelled contract address known as “minterproxy.”

From Minterproxy, a total of $865 million was moved to another address, where the tokens were eventually burnt and replaced by $865 million in stUSDT. The move minted the 865 million stUSDT and sent them to one of Sun’s wallet addresses.

According to the on-chain analytics firm Arkam Intelligence , the stUSDT tokens were later deposited to JustLend – a decentralized lending protocol on the Tron network.

data DefiLlama , JustLend has a TVL of $4.585 billion, with an increase of 25.63% over the last seven days.