Sui Foundation Addresses $400 Million Insider Selling Allegation

The Sui Foundation has officially rebutted the allegations circulating on social media regarding $400 million worth of insider selling during its recent price hike. They clarified on Monday that such activities did not occur from anyone associated with the foundation or its core contributor, Mysten Labs.

> "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," stated the non-profit organization supporting the Sui blockchain.

These claims emerged after pseudonymous crypto analyst Lightcrypto alleged on X that "insiders" had disposed of $400 million in Sui tokens amid the recent price surge. Lightcrypto pointed to wallets linked to the Sui initial coin offering but did not disclose specific wallet addresses.

The analyst expressed concern, stating, "It does not bring comfort that the people building this ecosystem, who arguably know this token's value best, are unloading hundreds of millions of dollars into less informed buyers chasing momentum." They further questioned whether Sui’s recent surge reflects the actual potential of the blockchain relative to the token’s valuation.

According to The Block’s Sui price page, Sui surged nearly 100% in the past month and over 19% in the past week, trading at $2.22 at the time of writing, with a minor decrease of 0.17% over the last day.

In response to the allegations, the Sui Foundation suggested that the wallet responsible for the alleged $400 million in token sales belongs to an "infrastructure partner" bound by a lock-up schedule.

> "All token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance," they noted.

The Sui Foundation has not yet responded to requests for additional comments.