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The Sui team has responded to allegations of insider token sales, following claims that SUI insiders had sold $400 million worth of tokens during a recent price surge. In a post on X, the team addressed the crypto community’s accusations, clarifying that no insiders conducted such a sale.
Sui Team Denies Insider Sale Claims
The Sui team wrote that no insiders, including employees of the Sui Foundation, Mysten Labs, or its investors, had engaged in selling tokens during this period. For context, the allegations came to light after SUI price experienced a significant rally, climbing over 120% in the past 30 days.
This sharp increase raised concerns within the crypto community, with some speculating that those with insider knowledge were cashing in on the rally. In their statement, the Sui Foundation stated, “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.”
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
Allegations Against Sui
In a widely circulated post on X, Light claimed that wallets connected to the SUI initial coin offering (ICO) had sold more than $400 million worth of tokens during the surge. The analyst further suggested that “Insiders, including what is likely a large foundation wallet, have sold $400 million in tokens throughout this run-up, had already begun selling material amounts at much lower prices, and are even accelerating their selling at these more elevated levels.”
Addressing these claims, the Sui team noted that while the wallet address in question had not been shared, they believed the tokens were held by an infrastructure partner under a lockup schedule. They asserted that “all token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance.”
Amid the inside trading allegations, SUI price dipped 0.24% to $2.24 over the last 24 hours. However, the token’s performance year-to-date has positioned it as one of the top performers in 2024, surpassing other prominent cryptocurrencies such as TON. Despite these gains, the accusations of insider trading have sparked unease among some investors.