Justin Sun Explains Reason for Cashing Out over $230 Million in USDC

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DeFi
Justin Sun Explains Reason for Cashing Out over $230 Million in USDC

Earlier today, Justin Sun, the co-founder of Tron, binned concerns around significant USDC transfers over the last few weeks. The founder claimed that those were domestic fund allocation and sorting.

The Massive Cash Withdrawals

The dispelled allegations involved large transactions made via his accounts recently. He claimed that the transactions with Circle were purely for internal fund sorting and allocation, and there was no truth to the reports that USDC stablecoin may be cashed out.

Up to this point, Justin Sun has sent Circle, the official issuer of USDC, close to $236 million in quick succession over the last three weeks.

Justin Sun said that his transactions with Circle solely included internal fund distribution and sorting, not a USDC cash out. According to Justin, there are several repetitive USDC transactions. As the firm expands, he added, the money allocation will grow.

Justin Sun said there are plans to hire more people and hold more TRON series fiat currencies.

“The claim that you can cash out is untrue. Only internal capital is deployed in the USDC Circle transaction, and double counting is used. We are actively hiring and expanding our investments in Dominica legal tenders since we are very enthusiastic about cryptocurrencies.”

Justin Sun further restated his enthusiasm about blockchain and cryptocurrencies and his plans to hire more people with the recent launching of USDD stablecoin.

Initial allegations made on Justin Sun

PeckShieldAlert, blockchain security, and data analytics business, revealed on Monday that the address associated with Justin Sun withdrew USDT stablecoins worth more than $100 million from Aave Protocol V2 in several transactions.

The address identified as Justin Sun transferred 50 million BUSD from Aave V2 and 70 million to Paxos throughout the previous 24 hours. Additionally, another address displays a withdrawal from Binance of 72 million USDC and transfers the funds to Circle.

Previously, on October 14, Justin Sun transferred Twenty million USDT from Aave V2 to Binance and over $160 million USDC from Aave V2 to Circle. Additionally, on October 17, he transferred $100 Thousand USDT to another address sponsored by Poloniex after withdrawing $100 Million USDT from Aave V2.

After he joined Huobi’s Global Advisory Board, enormous numbers of transactions were documented. It sparked debate about whether the current Huobi relations or the volatile cryptocurrency market was to blame.

According to the charges, the motivation for making such a significant number of withdrawals was probably related to the recent restriction Aave issued on the address of the Tron creator following a Tornado Cash ETH transaction. Aave suspended Justin Sun’s address in August after he acquired 0.1 ETH randomly from the cryptocurrency mixer Tornado Cash, which was blocked. Founder and CEO of Aave, Stani Kulechov, was contacted for assistance, and Justin Sun’s Aave account was eventually restored.

The stablecoins withdrawal was also connected to worries among DeFi community members about the possibility that Aave was subject to the same ‘exploit’ as the one that affected DeFi protocol Cream Finance earlier in the same month, leading to the loss of cryptocurrency valued at $130 million.

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Brenda Mary

Brenda Mary is a crypto enthusiast and a graduate of The University of Nairobi in economics. Brenda’s passion brings her back to her elementary school years as a poet. She enjoys discussing blockchain technology and is committed to producing original content. Brenda also covers other rapidly developing markets and economic and cryptocurrency studies.