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Sui denies $400M insider trading claims amid token surge

Sui denies $400M insider trading claims amid token surge

GrafaGrafa2024/10/15 08:05
By:Isaac Francis

Sui (CRYPTO:SUI), a layer-1 blockchain platform, responded on Monday to accusations that insiders profited from the sale of $400 million worth of SUI tokens during a recent price surge. 

These claims surfaced after SUI’s fully diluted valuation (FDV) hit $23 billion, raising concerns among some in the crypto community. 

The allegations suggest that insiders, including a wallet tied to the foundation, had sold significant amounts of tokens. 

However, Sui issued a statement on Twitter, denying the claims. 

The company clarified that no insiders—whether employees, Mysten Labs (Sui's core development team), or investors—were involved in selling any tokens. 

Sui’s token experienced a 100% rise in value over the past month, although it saw a 2.5% decline on the day, according to CoinGecko. 

The foundation did not respond to requests for further clarification but addressed concerns about the wallet in question. 

Sui stated that the wallet likely belonged to an infrastructure partner and that the tokens remain under a lockup agreement managed by qualified custodians. 

Despite Sui’s denial, skepticism remains within the community. 

Multicoin Capital’s managing partner Kyle Samani questioned the clarity of the statement, tweeting, "This is written as deceptively as possible. Perhaps the insiders collectively sold $399 million. Who knows?" 

He pointed out that the foundation itself was not explicitly mentioned in the statement. 

At the time of writing, the Sui price was $2.23.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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