Justin Sun, founder of the Tron network and a potential savior for a while of insolvent crypto exchange FTX, transferred $6.1 million in stablecoins from decentralized lending protocol TrueFi, one of a number of companies reduced by the debt of its sister company. Alameda Research by FTX.
Transaction data on the blockchain shows that Sun withdrew funds in four transactions processed on Thursday. He transferred 2.4 million USDT, 2.1 million USDC, 1 million USD TUSD and 673,000 USD BUSD from four credit pools available on the lending protocol.
Justin Sun and representatives of TrueFi did not respond to requests for comment at the time of publication.
TrueFi is a decentralized lending protocol where liquidity providers can lend money for profit and borrowers can borrow for interest. The loans are decentralized, which means that creditors do not pledge assets against it. Borrowers secure loans only with their good financial standing and trust.
Alameda Research has $7.3 million outstanding debt on TrueFi’s Capital Markets Credit Facility, managed by TrueTrading. Alameda’s bad debt accounts for almost half of the total outstanding balance on the protocol, according to TrueFi’s Dashboard. After Alameda filed for bankruptcy protection on Friday, the chances of it being able to repay the loan are low.
TrueFi has been rocked by two recent defaults. Based in Korea Blockwater is set by default on $3 million in debt despite restructuring efforts, and Invictus Capital failed to pay back its $1 million loan by the due date after filing a court-assisted liquidation petition earlier in the year. now.
According to the decentralized financial data website, the total value locked on TrueFi increased to $32 million from $544 million in the past six months as demand for crypto loans waned, according to the financial data website. decentralized DefiLlama.