Sun Ge fired at Huobi's Li Lin for cutting him off for $30 million, and then he sold USDD to make 20% a year: I really don't cheat

Tron founder Justin Sun has been actively promoting his high-yield stablecoin USDD (officially claiming a 20% annualized return, but with issues around scale and launch), acting as a customer service representative to address user concerns and guaranteeing that "this time" USDD is completely free of any tricks.

Further Reading: USDD Suddenly Withdraws $750 Million in BTC Reserves, Justin Sun: Don't Worry About High Collateralization, But the Community Has a Hidden Concern

Justin Sun Tweets and Slams Founder of Huobi, Li Lin

However, today when Justin Sun was promoting USDD on social media as usual, he suddenly opened fire on Huobi founder Li Lin, sparking widespread discussion in the community. He claimed that Li Lin hid a $30 million funding gap when selling Huobi, and after being exposed, refused to pay, forcing Sun to cover the gap from his own pocket:

USDD this time is truly zero threshold, zero permission, and completely decentralized. Some say the 20% annualized interest rate is high, but in my view, the crypto space really lacks a "zero-trust" decentralized stablecoin - one that never freezes and can be used with peace of mind. I've been doing stablecoins for so long, and I truly understand this pain point!

Moreover, I now announce that even if Li Lin uses USDD, he can withdraw safely without losing a penny of interest!

Those familiar with the inside story all know that Li Lin hid due diligence materials and created a $30 million hole internally, and then tried to play tricks, but was eventually exposed by me. After being exposed, he still refused to pay a penny, and in the end, I had to dig into my own pocket to fill this gap.

Fortunately, I had the money back then, and now the exchange's business funds have settled to 8 billion, so saying it out loud is no big deal, but it's just so disgusting! No matter how disgusting you are, you can't be as disgusting as Li Lin, that's for sure!

Li Lin's Four Points in Response to the Controversy

As the "30 million funding gap incident" quickly gained traction in the community, Li Lin also came forward on his WeChat Moments to clarify, with Dujun, the co-founder of Huobi, reposting Li Lin's statement on social media. The statement responds to the controversy with four key points:

Today, Mr. Justin Sun made remarks on social media regarding the settlement process and financial status of HTX (formerly Huobi). To respect the facts and protect the interests of all parties, I hereby make the following statement to clarify the facts and provide a reasonable solution.

Point One: Regarding the Different Understanding of Asset Calculation Methods During the Settlement Process

During the HTX settlement process in October 2022, the two parties had major differences in the calculation method of user assets, specifically:

1. During the settlement, our finance team, in accordance with industry practice, independently excluded users with negative assets and calculated the total user assets based on this.
2. If users with negative assets were not excluded, the calculated total user assets would actually be lower than the actual total, leading to insufficient reserved tokens during settlement and affecting user payouts.
3. All accounting records during the settlement process have been fully documented and handed over to Justin Sun's team, available for independent audit verification.

In simple terms, during the settlement, we fully considered the situation of users with negative assets and reserved sufficient funds. I have communicated with Mr. Justin Sun on this matter many times, and Mr. Sun also clearly expressed the hope to further reconcile the accounts and clarify the facts.

Therefore, this is not the so-called "concealment of transfer" or "capital hole", but rather due to the fact that the core personnel and financial data have changed since the completion of the transaction nearly two years ago, resulting in a misunderstanding between the two parties on the calculation method of the financial data at the time of the transaction.

Point Two: Regarding the So-called "Capital Hole"

1. The "30 million US dollar capital hole" mentioned by Justin Sun is essentially a margin call caused by extreme market conditions when the exchange was operating its margin trading business.
2. According to industry practice, the exchange will first seek compensation from users, and only recognize it as an operating loss and cover the margin call loss with business revenue if it cannot be recovered within a certain period of time.
3. Such situations are quite common in the industry and belong to the normal financial processing scope, and are not "capital gaps" or "concealment of assets".

HTX has used the company's revenue to make up for this part of the financial processing during the transaction, and the assets transferred to the buyer fully cover the user's assets, and there is no so-called "capital hole".

Point Three: The Transaction Contract is Subject to Hong Kong Law and Supports Third-Party Legal Arbitration

• This transaction contract was signed and executed in Hong Kong throughout and is governed by Hong Kong law.
• If there are disputes over the transaction results, we fully support fair adjudication through the Hong Kong courts or a third-party arbitration institution to protect the legitimate rights and interests of all parties through legal channels, rather than unilateral public opinion trials through social media.

Point Four: Understanding but Opposing Irresponsible Remarks

• In the case where the facts have not been clarified and there are still major differences between the two parties, Justin Sun has unilaterally made unfavorable remarks about us on public platforms by virtue of his strong media influence.
• This not only seriously affects our business reputation, but may also mislead the market and investors, thereby disrupting the normal order of the industry.
• We demand that Justin Sun immediately cease such behavior and return to the legal framework to resolve commercial disputes through reasonable and legal channels.

Using the Dispute to Drive Traffic to USDD?

We know that Justin Sun often does shocking things to attract community attention, and is praised by the community as a "hotspot generator", and Block Tempo has also introduced Justin Sun's crypto experience with the title of "Attention Master".

This time, Justin Sun suddenly started attacking Li Lin, which may also be to drive huge traffic through the dispute, and better market his newly launched high-interest product USDD. Because from the result, Justin Sun has indeed successfully attracted a lot of attention through this scolding battle, but using "exposing" to attract traffic also makes the community speculate whether the market participation of USDD is really making Sun anxious.