PeckShield: Justin Sun’s address extracted from Liquid and released the pledge of more than 2.5 million LQTY and deposited in Binance

On February 28, PeckShield monitoring showed that the address marked Justin Sun on the chain extracted and released pledge of more than 2.5 million LQTY (about US $5.9 million) from Liquid and transferred to Binance.

Interpretation of this information:

On February 28, 2021, a blockchain monitoring company, PeckShield, detected a blockchain transaction where an address identified to belong to Justin Sun, founder of the TRON blockchain, extracted and released a pledge of more than 2.5 million LQTY from Liquid, then transferred it to Binance. The transaction seems unusual, considering the quantum of funds involved and the personality behind the address. The monitoring firm did not give any reasons for the transaction, which raises questions as to why such a large transfer occurred.

Liquid is a Japan-based cryptocurrency exchange with a focus on providing access to NEAR protocol tokens, allowing customers access to several cryptocurrencies, including Bitcoin, Ethereum, and Stellar. Meanwhile, Binance is the world’s largest cryptocurrency exchange, facilitating hundreds of cryptocurrencies trades and transactions daily.

Justin Sun is known for his involvement in blockchain technology, with the TRON network being his most significant contribution. He is also known for his controversial actions, including contentious tweets, criticism of other blockchain projects, and leveraging influential people and events to promote his projects, and behaviors that suggest market manipulation.

PeckShield’s discovery adds to the growing list of controversies surrounding Justin Sun and his blockchain project. The large transfer of funds is highly unusual, and the cause of this action is not immediately clear. However, considering Justin Sun’s past actions, many analysts are questioning if it is an effort to manipulate the market and to influence the value of LQTY on the Binance exchange by increasing the supply.

The rise of cryptocurrency transaction monitoring firms like PeckShield shows increasing scrutiny of the blockchain industry. Their role is essential as they help identify suspicious transactions and address fraudulent and criminal activities occurring within the blockchain space. With a growing interest in the industry coming from regulators, it is essential to monitor transactions to ensure compliance with legal and regulatory requirements.

In conclusion, the transfer of more than 2.5 million LQTY from Liquid to Binance by an address associated with Justin Sun raises questions about the motives behind it. As transaction monitoring companies continue to identify such activities, regulators will surely hone in on the blockchain industry. Ultimately, the industry must move forward in a sustainable and legitimate manner, without relying on market manipulation or other unethical practices.