Warm greetings, traders. I want to talk about an issue that's been around for a while but has become a hot topic right now.
Justin Sun is back in the spotlight, and this time it's Sui taking the heat. Old story about Justin Sun, but still relevant today.
Back in May 2023, Changpeng Zhao, aka CZ, personally stepped in to warn Sun about a massive TUSD fund, around $57 - 59 million, that was transferred to Binance right when the SUI Launchpool had just opened. CZ was blunt about it at the time, saying the program was built for the retail community, not for whales looking to scoop up massive rewards. If it turned out that kind of huge fund was being used to farm tokens, the threat was clear, Binance would take action.
Sun himself responded quickly, saying the funds were actually meant for TUSD market making and liquidity, not for hoarding Launchpool tokens. He admitted a team had accidentally used part of the funds to join the campaign, then issued a full refund and apologized. Binance eventually reallocated the farmed SUI rewards back into the pool so other users could get their share. The drama died down fast, but it proved that the relationship between CZ and Sun is a mix of cooperation and quiet rivalry, especially now that a similar issue has resurfaced with the WLFI case.
The WLFI case is actually a fairly heated conflict between Justin Sun and World Liberty Financial, a crypto project affiliated with the Trump family. The WLFI team suddenly froze Sun's wallet using a hidden freeze feature, accusing him of pulling a pump and dump move by transferring 50 million tokens, which crashed the price by 14%.
What makes things even more interesting, Sui's fate as a network is giving us reason to be cautious again, the situation for SUI has gotten pretty rough lately. There's just been news that Phantom Wallet is going to drop support for SUI starting September 24, just 20 months after the token was added. Phantom users still holding SUI need to move their assets to a compatible wallet or swap into a still supported asset before that deadline hits.
What makes Phantom's decision feel reasonable is that Sui's Total Value Locked (TVL) has plunged hard, from its peak of $2.58 billion in October 2025 to just $469 million now, a drop of 82%. For traders still holding positions in Sui, this is a signal that can't just be ignored. The combination of Justin Sun's constantly questioned reputation and Sui's steadily declining TVL trend is making sentiment toward the Sui ecosystem heavier, and it looks like this is going to be a hot topic among traders for a while.
So to sum it up, for those who don't know, Justin Sun is a Chinese crypto entrepreneur best known as the founder of Tron, and Changpeng Zhao, usually called CZ, is the founder and former CEO of Binance, a Canadian of Chinese descent. Right now, Sui's situation is still in a cautionary stage. So if you're holding SUI and seeing this kind of condition, what would you do? Would you sell, or would you hold?
This article is original, written by me on Publish0x
⛔Disclaimer - This analysis is for educational purposes and reflects personal opinion only, not financial advice. Always practice risk management and use stop losses (SL) according to your own risk tolerance.
