Sui Foundation Addresses Allegations of $400 Million Insider Token Sale

The Sui Foundation has responded to allegations regarding a $400 million insider token sale during a recent surge in the price of SUI tokens, asserting that all lockup agreements are being enforced properly.

The controversy began when a pseudonymous crypto analyst, known as Lightcrypto, claimed on October 14 that insiders sold a significant amount of SUI tokens, raising concerns among the community.

In a statement released on October 15, the Sui Foundation refuted these claims, emphasizing that neither its employees nor investors connected to Mysten Labs—the team behind the Sui blockchain—engaged in any such sales. The Foundation stressed that all token lockups are “enforced by qualified custodians and continuously monitored by the Sui Foundation.”

In its response to the allegations, the Foundation stated, "No insiders, including employees of the Foundation or Mysten Labs (and their founders), or ML investors, participated in any selling activity."

While the Foundation did not identify specific individuals, it suggested that Lightcrypto might have been referring to a wallet belonging to an "infrastructure partner," which holds tokens subject to a lockup schedule. Following this clarification, the price of SUI dipped by 1.7% to $2.21. However, the token has experienced a notable 106% increase over the past 30 days, according to data from crypto.news.