Brief
A wallet associated with Justin Sun reportedly profited more than $3.3 million.
The profit was made in a series of trades after USD Coin lost its dollar peg.
The Tron founder reportedly exchanged all his USDC for DAI during the depegging.
Justin Sun, the entrepreneur behind the Tron network, reportedly made a massive profit over the past week as the turmoil in the traditional banking system hit the crypto market. Sun profited more than $3.3 million by avoiding the loss from USD Coin’s de peg. He tweeted earlier this week that he was concerned to see the depegging of Circle’s USDC.
Concerned to see @Circle's #USDC depegging, but as a partner of Circle, we're closely monitoring the situation. Our team at #TRON stands ready to offer assistance if needed.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
According to data gathered by blockchain analytics firm Lookonchain, a wallet associated with Justin Sun withdrew 50 million USDC from Aave and another 50 million USDC from Binance. These withdrawals were made after the stablecoin lost its peg to the U.S. Dollar. These USD Coins were then exchanged for DAI at a 1:1 ratio.
This was followed by a withdrawal of 214.9 million USDT from Binance, of which 100 million USDT was exchanged for 103.3 million USDC, and 75 million USDT was exchanged for 75.5 million DAI. All the USD Coins accumulated by the wallet were eventually exchanged for DAI stablecoins.
Once USD Coin regained its peg, the wallet exchanged 30 million DAI for 30 million USDC and bought another 20 million USDC with USDT. The total 50 million USDC was then transferred to a different address. As per Lookonchain, this address also received 100 million USDC from Justin Sun. A total of 150 million USDC were transferred to Coinbase.
According to Etherscan, the wallet in question currently contains over $369 million worth of crypto assets. This includes 254 million DAI, 67 million USDT, 45 million USD Coins, and 1.7 million TUSD.
