Justin Sun prints $800M in little-used stablecoin

On Friday afternoon, HTX board member Justin Sun undertook a mass printing of the little-used stablecoin TUSD, a move that caught the attention of traders as over $815 million entered circulation in less than 15 minutes. 

Starting at 11:45 am ET, data from Tronscan shows that $815 million TUSD was minted directly to the Tron blockchain across a series of 10 transactions. Each of the mints was to a new address, which then immediately sent funds to the Huobi 2 hot wallet.

Prior to these transactions, the last TUSD mint to Tron was seven days ago. 

Shortly after these deposits, a series of nine transactions from the Huobi 2 address sent TUSD totaling roughly $815 million to a well-known and closely-watched address managed by Justin Sun. 

The funds were then sent to an unlabeled contract whose code refers to it as “minterproxy.” Minterproxy then sent $865 million in TUSD to another address, which in turn burned the tokens. 

However, the TUSD burns happen to align almost perfectly with mints of stUSDT. Across 10 transactions, $865 million stUSDT were minted to Sun’s address. Sun then deposited the stUSDT to Tron-based lending platform JustLend over a series of six transactions.

The deposits today now account for half of Sun’s $1.5 billion JustLend position, per Tronscan. 

StUSDT is a staked USDT product that currently yields 4.2%, with claims that the yield comes from real-world assets (RWAs). According to the stUSDT website, which Blockworks viewed via a proxy as United States IP addresses are geofenced, the yield is generated via “high-grade short-term government bonds.” 

Per DeFiLlama data, JustLend’s total value locked (TVL) increased 17% to $4.63 billion following the deposits. 

In a recent statement to CryptoSlate, a Tether spokesperson said that stUSDT was “an independent project and is not affiliated with Tether.” Additionally, in July, TUSD parent company Archblocks co-founder accused Sun of acquiring TUSD through various shell companies. 

Sun, who was charged with fraud and other securities laws violations by the SEC in March, said in a statement to Blockworks that the transactions were related to his personal fund and not Huobi business. 

He added: “Printing! Moar!”

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