BREAKING: Sui Foundation accused of $400 million insider trades, causing token's rapid surge
The claim surfaced as pseudonymous crypto analyst Lightcrypto alleged on X on Monday that "insiders" had sold $400 million worth of Sui during the token's recent price surge. Light identified wallets linked to the Sui initial coin offering as insiders, although specific wallet addresses were not disclosed.
“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,” they alleged. In the same tweet, Lightcrypto questioned Sui’s recent surge and whether the blockchain has shown as much potential as the token’s valuation.
One of the non-profit organisations supporting Sui chain denied the accusations. “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".
Meanwhile, the Sui Foundation speculated that the wallet that sold $400 million worth of Sui tokens was to be owned by an “infrastructure partner” that owns tokens under a lock-up schedule.
“All token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance,” the foundation noted.
Meanwhile, after reaching all-time high, Sui is showing signs of local volatility with local bearish trend.
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