The Sui Foundation has dismissed claims that its employees or those of Mysten Labs sold tokens worth $400 million during a specific period. The foundation, which supports the layer 1 blockchain Sui Network, also rejected reports that insiders from the two organizations were involved in “any preemptive selling or violation of lockups and the circulating supply schedule.”

The foundation’s October 14 clarifying statement was in response to a social media user whose post accused people building the Sui ecosystem of deliberately dumping tokens on unsuspecting investors. According to the claims, the insiders were even selling “material amounts at much lower prices.”

Besides criticizing insiders for allegedly dumping on retail investors, the social media user Light Crypto also questioned the SUI token’s rapid ascent in the last few weeks, which he said had become “more and more baffling.” The user also asked if SUI’s potential is only a quarter of Solana’s potential as the token’s current price suggests.

However, in a statement shared on X (formerly Twitter), the Sui Foundation denied being associated with a cryptocurrency wallet identified by the social media user.

“While the poster did not provide the wallet address, 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 the Sui Foundation, and this partner is in compliance,” the foundation explained.