The SUI Network has debunked claims that it was involved in insider trading activities on the blockchain amid rumors of such action
There are reports that the Sui Foundation is involved in insider trading involving more than $400 million of native tokens. However, the network has issued a public notice to clarify the claims.
SUI Trading Volume Plunge by Over 20%
In an X post, the Sui Network claimed that no such event happened in its foundation or core contributor, Mysten Labs. Sui also said that its employees and investors have no part in Insider trading. It further said there are no preemptive selling or violation of lockups and the circulating supply schedule within its protocol.
“……we believe the likely owner of the wallet is an infrastructure partner who owns tokens under a lockup schedule. All token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance,” Sui wrote on X on Monday.
SUI has seen a value dip since the insider trading rumor came to the limelight. At the time of this writing, the coin traded at $2.24. Its trading volume is 22.29%, down from its previous level 24 hours ago. This suggests that the news impacted investors’s sentiment, and they are gradually losing confidence in the protocol.
Origin of the Sui Network Allegation
Noteworthy, the rumor started with a top crypto analyst with the handle @lightcrypto on X noting that Sui Foundation-linked wallets have sold more than $400 million worth of SUI tokens.
According to the analyst, this action occurred amid the SUI price rally over the past few months. He practically highlighted a wallet address, “0xbe90…950aa8,” that has redeemed over 82.6 million SUI tokens since June 2023 from the stake account “0x7f3b…3239e4.”
Only this stash is valued at approximately $184 million. After that, the wallet transferred SUI in bits to crypto exchanges like OKX, Binance, and Bybit. Notably, the coins in the stake account 0x7f3b…3239e4 came from the Sui Foundation’s address, 0x341f…17fae1.
“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 the token into less informed buyers chasing momentum,” Light Crypto wrote.
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