The Sui Foundation has firmly denied allegations that $400 million worth of Sui tokens were sold by insiders during the recent price increase. On Monday, the foundation clarified that neither its team members nor those from Mysten Labs, including the company’s founders or investors, had engaged in such transactions.
“No employees of the Foundation or Mysten Labs, nor investors, have sold $400 million worth of tokens during this time, either individually or collectively,” stated the non-profit backing the Sui blockchain.
The controversy began when a pseudonymous crypto analyst known as Lightcrypto posted on X, accusing “insiders” of offloading large amounts of Sui tokens amid the assetโs price surge. Lightcrypto claimed that wallets connected to the initial coin offering (ICO) were involved, though they did not provide specific wallet addresses to support the claim.
โItโs concerning when the individuals developing this ecosystemโthose who arguably understand the tokenโs value better than anyoneโare reportedly selling hundreds of millions worth of tokens to uninformed buyers chasing the market momentum,โ Lightcrypto expressed. They also questioned whether the recent surge in Suiโs price was justified given the blockchainโs actual performance.
Sui has seen substantial growth, rising nearly 100% in the past month and over 19% in the past week. According to PRIMEโs price page, the token is trading at $2.26, showing a slight 1% up in the last 24 hours.
The Sui Foundation suggested that the wallet responsible for selling the $400 million worth of tokens could belong to an โinfrastructure partnerโ whose tokens are under a lock-up schedule.
“All token lockups are enforced by qualified custodians and continuously monitored by the Sui Foundation. The partner in question is in compliance with these guidelines,” the foundation explained.