The Sui Foundation has responded to the accusations that it engaged in insider selling activities. Reports earlier surfaced that over $400 million worth of SUI tokens had been sold by insiders. However, the foundation has now debunked those claims, saying the reports are unfounded and untrue.
Sui Foundation Denies Insider Trading Allegations
A popular crypto analyst that goes by the name @lightcrypto was first to point out the alleged wrongdoing. According to him, a wallet linked to the Sui Foundation had sold over $400 million in SUI tokens during the recent price surge. The analyst claimed that the wallet in question, identified as 0xbe90…950aa8, redeemed 82.6 million SUI tokens, worth about $184 million, from a stake account since late June. That is, before transferring the same tokens to major crypto exchanges, including OKX, Binance, and Bybit.
In their defense, the Sui Foundation denied the claims, stating categorically that none of its employees or people close to the foundation had sold any tokens during this period. The denial was shared in an X post which reads:
“No insiders, including employees of the Foundation or Mysten Labs, have sold $400M worth of tokens during this period, either individually or combined.”
Furthermore, they attempted to clarify the issues raised by @lightcrypto, saying that the tokens he is talking about are likely owned by infrastructure partners, who are bound by the lock-up period. If that then be the case, the foundation clarified that those are not foundation insiders but mere partners.
Token Plummets
Interestingly, the negativity around the Foundation at the moment may have impacted its SUI token. That is because, despite denying the allegations levied against it, the price of SUI fell by 2%.
The situation becomes more worrisome considering that the broader cryptocurrency market continues to climb. Besides, some analysts are even still predicting further declines for SUI. Crypto expert Ali Martinez, for instance, has warned that the TD Sequential indicator is hinting at a sell-off. That is not to mention another analyst projecting as much as a 43% dip in the coin’s value.
