Blockchain-based network Tron's founder Justin Sun had to reclaim his $56M token transfer to Binance's Launchpool platform following Binance CEO Changpeng Zhao's (CZ) warning.
In his warning, Zhao said the platform could take action against Sun if he uses the funds to acquire new Sui tokens.
Binance CEO underlined that the Launchpool platform is for individual investors, not institutions or crypto whales.
- Within 20 minutes, Sun said the transfer did not aim at any acquisition of Sui tokens by apologizing to Zhao.
- Tron's founder added that he arranged a full return for the funds on the platform.
- Binance's Launchpool platform allows users to acquire rewards regarding new project tokens by staking cryptocurrencies like Binance Coin (BNB) and TrueUSD (TUSD).
- Sui's mainnet will go live on May 3 and will be the 33rd project to launch on Launchpool.
- Users will be able to lock their own tokens for two days after the mainnet goes live to earn rewards of Sui token (SUI).
- Binance will pair the token with Bitcoin (BTC), Tether (USDT), TrueUSD (TUSD), and Binance Coin (BNB) for trading by listing on the exchange when its liquidity meets Binance's requirements.
The Layer-1 blockchain network Sui was built by Mysten Labs, a startup founded by former executives of Meta's now-abandoned crypto project, Diem, just like the Aptos project.
- Justin Sun is a crypto figure who already came under scrutiny by regulators, including the U.S. Securities and Exchange Commission (SEC).
- In March, the SEC sued Sun with allegations like the organization of the unregistered offer and sale, manipulative trading, the unlawful touting of crypto asset securities, and engaging in manipulative wash trading with the help of celebrities.
- The agency also plans to permanently block Sun from holding any position of authority in a firm offering crypto securities.
