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SUI Coin is currently under investigation by the Financial Supervisory Service (FSS) for allegations of making false statements regarding its circulation volume and staking profits. Democratic Party representative Min Byung-deok criticized the Digital Asset Exchanges Association (DAXA) for not taking action against SUI Coin for deceiving the authorities responsible for its circulating supply.
SUI Coin Accused of Deceiving Investors
The issue was raised during a Government Affairs Committee inspection on October 17th. According to Representative Min Byeong-deok of the Korean Democratic Party, SUI Coin has experienced a significant decline in value since its release in May 2023.
Byeong-deok stated:
It has lost more than 67% in value in the past five months since its listing. The SUI Foundation, by staking the locked amount for their own benefit, has sold it to increase circulation.
According to Representative Min Byeong-deok, one of the main factors contributing to this decline is the dissemination of false information to the public regarding SUI Coin’s market value and ranking in circulation volume.
Byeong-deok also mentioned that the SUI Foundation has benefited from SUI Coin for its own interests, specifically through the locked amount of SUI tokens.
Furthermore, the Digital Asset Exchanges Association (DAXA), consisting of five major responsible exchanges in the listing of SUI Coin, was criticized for not taking any action against such violations despite having guidelines.
FSS to Investigate SUI Coin for Possible Fraud
Responding to Representative Min’s allegations, FSS Director Lee Bok-hyun acknowledged certain difficulties regarding SUI Coin’s distribution volume and practices, stating:
I believe there is an issue in the area you pointed out. Nonetheless, we urge Docsa to take action to regain consumer trust. If there is manipulation through staking in the distribution volume or through misleading statements, we will consult and take action. I will do so.
Director Lee also emphasized that if evidence of manipulation or fraud by SUI Coin emerges, the FSS will cooperate with the necessary authorities and take appropriate measures.