Justin Sun transfers $100 million to Binance in an effort to assuage fears about the exchange’s financial stability
Justin Sun placed a large sum into Binance when the exchange’s outflow surpassed $1.8 billion.
Justin Sun, an inventor of TRON, recently addressed concerns about Binance’s finances. On Tuesday, Sun reportedly deposited $100 million into Binance and supplied an Etherscan link. Sun’s move comes after Binance’s outflow exceeded $1.8 billion and its BNB coin fell 8% on Tuesday. FUD also caused BSC-based DeFi protocols to lose value.
According to lookonchain, Justin Sun(0x9f84) withdrew 34m BUSD and 15.4m USDT from Binance 9 hours ago and moved them to Paxos and Circle. Justin Sun said the current funding is “regular business collaboration.”
As traders were concerned about Binance’s reserves, withdrawals soared. Net outflow surpassed $902 million in 24 hours on Monday, topping all controlled exchanges. Binance’s withdrawals were nine times bigger than the second-largest.
The recent outflow is the biggest since early November, two days after FTX collapsed. Arkham analyst Henry Fisher isn’t worried by the pullout. He says the exchange has $64 billion in assets.
Binance’s $1.8 billion outflow benefited Huobi and Paxos, according to Nansen statistics. The two platforms collected $162 million in Netflow, with Coinbase experiencing a $124 million increase.
BNB is down 8% for the day to $259 due to Justin Sun-Binance. Binance Service Chain (BSC) DeFi protocols are down 4.5% in value frozen, according to DeFiLlama.
Binance suspended USDC withdrawals early Tuesday. The platform is swapping USDC for BUSD. Binance CEO Changpeng Zhao said the transaction required a New York bank:
“USDC withdrawals have risen.” To exchange PAX/BUSD to USDC, you must use a NY USD bank. Banks aren’t open yet. When banks open, we anticipate the situation to improve.
Zhao described Sun’s Binance deposit as part of BUSD deployment onto TRON. The Binance CEO said he didn’t know the facts since he wasn’t directly involved.