SUI Insiders Accused of $400 Million Token Sale

The Sui Foundation, the organization behind the SUI cryptocurrency, has denied allegations of insiders, company employees, or Mysten Labs selling $400 million in tokens during the recent price surge.

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

“No insiders, neither employees of the Foundation nor Mysten Labs (including the founders), nor ML investors sold tokens worth $400 million during this period, either individually or collectively. Insiders did not engage in any preemptive sales or violations of lock-up and circulating supply rules,” the statement reads.

The Sui Foundation emphasized that an infrastructure partner might be behind the transactions, but a breach of the token unlock schedule is ruled out.

The foundation’s statement followed a post by a user on X with the nickname light, who claimed that insiders sold $400 million in tokens. He identified wallets associated with the initial distribution of SUI.

One thing that I’ve found more and more baffling in the last few weeks is the vertical ascent of SUI, with it quintupling off the lows (Ex 1). The market is starved for winners, and believes it has found one here, yet it all feels awfully chintzy for two reasons that I think feed… pic.twitter.com/VKISXpdxp1

— light (@lightcrypto) October 14, 2024

“[…] It is disheartening that the people creating this ecosystem, those who arguably know the token’s value best, are offloading hundreds of millions of dollars worth of tokens to less informed buyers chasing momentum […]” light’s message states.

Since August 5, SUI has surged by 400%, recently reaching an all-time high.

Earlier, the blockchain-related company Mysten Labs announced the start of tests using mobile networks and radio waves for offline cryptocurrency transactions.

In September, Grayscale included SUI in its top 20 promising assets for the fourth quarter.