In the shimmering lights over Victoria Harbour, the "BUIDL 2025" Web3 industry summit set the stage for a moment that would capture the attention of the crypto world. Amid the clinking glasses and lively discussions, a group photo quickly went viral: Huobi founder Li Lin, Binance founder CZ, and Tron founder Justin Sun stood front and center, raising their glasses with broad smiles, surrounded by other prominent figures from the cryptocurrency industry.
But it was another, even more striking image that truly stole the spotlight—Justin Sun and Li Lin embracing and sharing a traditional "cross-cup" toast. Just two months earlier, Sun had publicly criticized Li for allegedly concealing financial discrepancies at Huobi. Their very public dispute had seemed irreconcilable. Had they truly set aside their differences in such a short time?
These photographs serve as a snapshot of the cryptocurrency industry's "golden age"—a landscape marked by undercurrents of rivalry yet defined by interconnected interests. Their appearance together not only hints at complex personal relationships but also symbolizes the industry's evolution from its wild early days toward a more compliant future.
The Tangled Web of Debt Disputes Between Li Lin and Justin Sun
The conflict between Li Lin and Justin Sun, stemming from Huobi's acquisition, is well-known within crypto circles. It began on October 8, 2022, when Li Lin sold his shares in Huobi to About Capital, a firm linked to Justin Sun. Three years after the acquisition, in February 2025, Sun publicly accused Li of withholding vital due diligence materials and alleged that Huobi had a financial shortfall of $30 million, which he claimed to have covered out of his own pocket.
Li Lin responded at length, stating that at the time of the 2022 acquisition, the two parties had disagreed on how to calculate user assets and that sufficient reserves had been set aside. He clarified that the so-called "$30 million shortfall" was actually a loss resulting from extreme market conditions affecting leveraged trading—a loss that had already been covered by company revenue. Therefore, Li argued, it should not be considered an undisclosed financial漏洞.
This was not the first clash between the two. Their disagreements began shortly after the Huobi sale.
In May 2023, Sun accused Li Lin's brother, Li Wei, of obtaining large amounts of HT tokens at zero cost through improper means and dumping them on the market. Sun announced that to protect the HT community, he would pursue the recovery and burning of those tokens. Li Lin responded on social media, challenging Sun to provide evidence and offering to personally compensate Huobi with ten times the amount of HT in question if the allegations proved true. He also demanded the return of user assets if the claims were false.
Sun eventually deleted the accusatory tweet without providing conclusive evidence. Although the incident raised questions about Huobi's internal management, the matter was quietly dropped. The underlying tensions, however, remained—flaring up once again in February 2025 over the $30 million financial dispute.
The images of Sun and Li toasting together at the summit added a new layer of intrigue. Their cheerful and intimate demeanor suggested a camaraderie that seemed at odds with their very public feud just months earlier. Was this a carefully staged performance for the public, or had they genuinely reconciled behind the scenes? The nature of their relationship remains shrouded in mystery.
This was not the first time Li Lin had shared such a toast with a fellow crypto magnate. Back in 2018, he was photographed toasting with Xu Mingxing, founder of OKEx (now OKX), at a casual street-side barbecue. At the time, Xu was facing scrutiny over OKEx's suspension of withdrawals, and Li publicly expressed his support. While some viewed this as a performance, it also reflected a sense of mutual respect among pioneers in a then-nascent industry filled with both opportunity and risk. Xu later acknowledged Li's support, saying, "Having shared a toast, we are true brothers."
CZ and Justin Sun: Frenemies Shaping an Industry
Justin Sun and CZ are both regarded as leading figures in the crypto space. Sun's Tron network and his leadership at Huobi HTX complement—and compete with—CZ's Binance ecosystem. Both have graced the cover of Forbes magazine, underscoring their global influence. Their intertwined histories reflect the broader narrative of cryptocurrency's evolution.
Their paths first crossed indirectly in 2015 when Sun and He Yi, who would later co-found Binance with CZ, appeared together on a reality show. At the time, the industry was brimming with possibility, and collaboration was the order of the day.
In October 2018, Sun and CZ met at the World Investment Forum in Geneva. Binance had just established its Blockchain Charity Foundation, and the Tron Foundation donated $3 million to support blockchain-based humanitarian efforts.
2019 marked a honeymoon period in their relationship. In January, BitTorrent (BTT)—a project acquired by Sun—conducted its initial exchange offering (IEO) on Binance's Launchpad, raising $7.1 million in just 14 minutes. This successful collaboration was followed in April by Binance's support for TRC20-USDT, which brought significant liquidity to the Tron ecosystem. During this period, the two founders frequently promoted each other's projects, achieving what appeared to be a mutually beneficial partnership.
The launch of Binance USD (BUSD) in September 2019 marked a turning point. Backed by Paxos Trust Company, BUSD's market capitalization swiftly surpassed $1 billion. By September 2022, its market cap had reached $20 billion, and Binance announced it would cease support for competing stablecoins like USDC, USDP, and TUSD—a direct challenge to the stablecoin giant.
Just one month after this announcement, Huobi Global—which Sun had acquired only 20 days earlier—revealed that it would delist HUSD, another stablecoin developed in partnership with Paxos. The value of HUSD plummeted, and it never recovered. Interestingly, around the same time, CZ was photographed dining with Paxos co-founder Rich Teo, leading to speculation about coordinated strategies behind the scenes—though nothing was ever confirmed.
In December 2022, Binance announced the integration of BUSD on the Tron network, and Sun enthusiastically promoted the collaboration. Yet beneath the surface, tensions over stablecoin dominance persisted.
In May 2023, Sun transferred 405 million TUSD to Binance, allegedly to participate in the SUI token mining event on Binance LaunchPool. The move sparked accusations of insider trading, with critics alleging that CZ was facilitating Sun's access to lucrative opportunities. Both founders issued statements denying any wrongdoing, and the controversy gradually subsided.
It is worth noting that TUSD emerged as a successor to BUSD after U.S. regulators targeted Paxos in February 2023. Binance began aggressively promoting TUSD, which briefly surpassed USDT in trading volume on the platform. This strategic shift increased competitive pressure on Sun's TRC-USDT.
In April 2025, Sun publicly accused First Digital Trust (FDT)—the issuer of FDUSD and asset manager for TUSD—of being insolvent. He claimed that an investigation had revealed misappropriation of client funds and alleged that TrueCoin had conspired with FDT to illegally transfer $456 million in TUSD reserves to a Dubai-based company. First Digital denied the allegations, stating that they related only to TUSD and not FDUSD.
The incident placed Binance under scrutiny once again, particularly after allegations surfaced that large investors had been warned of issues ahead of smaller traders. Sun, by contrast, positioned himself as a whistleblower protecting investor interests. While his motives may have been primarily financial—recovering a personal deposit—the episode underscored the ongoing tensions within the industry.
Despite their competitive dynamics, Sun has repeatedly publicly supported CZ. When the U.S. SEC sued Binance in June 2023, Sun expressed unwavering support for his "friend CZ." And when CZ stepped down as CEO of Binance in November 2023, Sun praised his leadership and contributions to the industry.
When Li Lin and Justin Sun raised their glasses in a symbolic toast, and when CZ and Sun chatted amicably at the summit, observers were left to wonder whether they were witnessing genuine reconciliation or strategic diplomacy. In the end, the answer may not matter. In the cryptocurrency industry, shared interests often outweigh personal grievances. The history of collaboration and competition among these leaders mirrors the industry's broader journey toward maturity—a path that seeks to balance regulatory compliance with the original vision of blockchain.
As Sun noted in a Forbes interview, "True innovators must adhere to long-termism." As the lights glittered over Hong Kong, the industry's future remains unwritten. The next chapter may bring fiercer competition, or it may bring renewed collaboration in the face of shared challenges. What is certain is that the industry's enduring allure lies in these very stories of rivalry and alliance.
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Frequently Asked Questions
What was the financial dispute between Justin Sun and Li Lin about?
The conflict arose from allegations that Li Lin concealed financial discrepancies during the sale of Huobi to a firm linked to Justin Sun. Sun claimed he had to cover a $30 million shortfall, while Li argued it was a trading loss already resolved internally.
How did Binance's stablecoin strategy affect the industry?
Binance's promotion of BUSD and later TUSD created competitive pressure on other stablecoins, including USDT. Its decisions to delist competing stablecoins significantly influenced market dynamics and liquidity across exchanges.
Why are relationships among crypto founders so complex?
The industry's rapid growth and high stakes intertwine personal and business interests. Founders often collaborate on projects while competing for market share, leading to alliances that can shift based on strategic needs.
What is the significance of the "cross-cup toast" in crypto culture?
Such gestures often symbolize public reconciliation or mutual respect among industry leaders. While sometimes perceived as diplomatic theater, they also reflect the community-oriented nature of the early crypto ecosystem.
How did regulatory actions impact stablecoin projects like BUSD and HUSD?
U.S. regulatory enforcement against Paxos led to the decline of BUSD. Similarly, loss of confidence and regulatory uncertainties contributed to the failure of HUSD, highlighting the critical role of compliance in stablecoin viability.
What can we learn from the evolving relationships among crypto leaders?
Their interactions underscore that strategic interests often transcend personal disagreements. The industry's future will likely be shaped by how well its leaders navigate both collaboration and competition under increasing regulatory scrutiny.