The Sui Foundation has firmly denied allegations that insiders sold $400 million worth of SUI tokens during a recent price surge, asserting that all token lockups are being properly enforced.

Allegations of Insider Sales

The Sui Foundation faced scrutiny after a crypto analyst raised concerns about alleged insider token sales amid a significant price increase in Sui’s value. The analyst, known as Lightcrypto, claimed that insiders sold $400 million worth of SUI tokens, linking specific wallets associated with the initial coin offering to the alleged sales.

“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. 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…”

Community Debate and Analyst Concerns

Lightcrypto’s assertions sparked a debate within the crypto community, as the analyst questioned the integrity of those building the Sui ecosystem. The analyst stated, “It does not bring comfort that the people building this ecosystem, the people who arguably know this token’s value best, are unloading hundreds of millions of dollars of token into less informed buyers chasing momentum.”

Sui Foundation’s Response

In response, the Sui Foundation issued a statement refuting the claims, emphasizing that neither its employees nor investors associated with Mysten Labs, the developers of the Sui blockchain, engaged in any such selling. The Foundation clarified that all token lockups are “enforced by qualified custodians and continuously monitored by Sui Foundation.”

“Following an allegation of ‘Sui insiders selling $400M in tokens throughout this run-up,’ Sui Foundation would like to respond directly: No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors…”

Market Impact

While the Foundation did not specify any individuals, it suggested that Lightcrypto might have been referring to a wallet controlled by an “infrastructure partner” who holds tokens under a lockup schedule. Following this statement, the price of SUI fell by 1.7% to $2.21. Nevertheless, the token has experienced a significant increase of 106% over the past 30 days.

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