Sui Foundation Denies $400M Insider Selling Allegations

The Sui Foundation, a non-profit organization developing the layer-1 Sui blockchain, has refuted insider trading claims. In a recent tweet, the firm denied any involvement of its employees, insiders, or foundation members in the alleged $400 million token selloff.

Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual:

1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors,…

— Sui (@SuiNetwork) October 14, 2024

SUI reached an all-time high of $2.35 on October 14, 2024, marking a significant increase of over 120% in the past 30 days alone.

Allegations of $400M SUI Insider Selling

The Foundation has found itself at the center of controversy after crypto analyst Lightcrypto raised concerns about alleged insider token sales during the recent surge in SUI’s price.

The pseudonymous analyst claimed that “insiders” sold $400 million worth of SUI, linking specific wallets associated with the initial coin offering to the alleged sales.

“It does not bring comfort that the people building this ecosystem, the people who arguably know this token’s value best, are unloading hundreds of millions of dollars of the token into less informed buyers chasing momentum,” Lightcrypto said.

Lightcrypto’s assertions sparked debate within the crypto community. The analyst questioned Sui’s recent price surge and the integrity of those building the Sui ecosystem.

Sui Foundation Denies the Allegation

The Sui Foundation emphasized that neither its employees nor investors associated with Mysten Labs, which developed the Sui blockchain, engaged in any such selling.

“No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens during this period, either individually or combined. Insiders have not been involved in any preemptive selling or violation of lockups and the circulating supply schedule,” the foundation stated.

Furthermore, the Foundation speculated that the wallet in question likely belongs to an “infrastructure partner” operating under a predetermined lockup schedule. They emphasized that all token lockups are enforced by qualified custodians and continuously monitored to ensure compliance.

Despite the controversy, the price of Sui has shown remarkable resilience. According to price tracking platform CoinStat data, the token registered a modest 0.62% increase in the last 24 hours, exchanging hands at $2.249 at press time.