The cryptocurrency community is raising questions about the relationship between Binance exchange and a stablecoin linked to Justin Sun, amid extensive investigations on both. Many are now wondering if the empire of Binance CEO Changpeng Zhao (CZ) is in danger.
Binance has been continuously supporting TrueUSD (TUSD), which has triggered concerns within the crypto community. TUSD is known to be backed by TrustToken, whose co-founder Rafael Cosman was recently charged with conspiracy to commit securities fraud. This prompted many users to question why Binance still supports it despite these issues.
In addition, Binance has been sued by the Commodity Futures Trading Commission (CFTC) for violating regulations. The CFTC alleges that Binance allowed US customers access to its trading platform without following proper KYC/AML procedures.
Despite these challenges, Binance recently announced that it will add more TUSD trading pairs including XRP, Solana, Matic, SSV, Lido DAO and Optimism. According to the announcement made on March 25th , users can start trading them from March 29th .
Many members of the crypto community have expressed concern over this move since they believe that adding more TUSD pairs could further damage CZ's reputation and put his entire empire at risk.
The situation has become even more complicated due to allegations of a close relationship between CZ and Justin Sun--the founder of TRON Foundation who launched SUN--a stablecoin pegged against USD but backed by TRON tokens--in September last year.
According to some reports circulating within the crypto space, there may be some links between CZ and Justin Sun because both have invested in various blockchain projects together over time. However, there is no concrete proof yet confirming such claims.
As investigations into both entities continue amidst mounting legal challenges, the crypto community remains divided on whether or not CZ's empire is in danger. Some believe that Binance will weather this storm and come out stronger, while others fear that the company may not survive these allegations.
Regardless of what happens next, it is clear that the crypto industry as a whole will be closely watching how Binance navigates through these troubled waters.