Sui token fights back despite ‘baseless’ charges dismissed
Sui's native SUI token fell more than 9% and struggled to recover after South Korean regulators accused Sui's foundation of using the token offering for its own benefit.
After falling from $0.41 on October 16 to $0.37 on October 18, the SUI token has gained a little less than 1% in the last 24 hours. Current prices show a 7% drop in two days, according to data from CoinGecko.
In a post to X (formerly known as Twitter) on October 18, the Sui Foundation – the organization behind the layer-1 blockchain Sui – slammed the allegations of supply manipulation as “baseless and materially false”.
“We want to address some of the inaccuracies reported today,” the Sue Foundation said.
“The baseless and material misrepresentations surrounding the offering of SUI tokens need to be addressed. There has never been any sale of SUI tokens by the Foundation since the first Community Access Program (CAP) distributions,” he explained.
We would like to address some of the issues reported today.
The Sui Foundation remains committed to cooperating with DAXA and its member exchanges in a spirit of full compliance and transparency.
The baseless and material misrepresentations surrounding…
— Sui Foundation (@SuiFoundation) October 17, 2023
“The circulation delivery schedule displayed on the Sui Foundation's public website and via public API endpoints is accurate.”
The Sue Foundation's Stewart Post responded to reports from South Korean news outlets TechM and Block Media that the country's regulators have launched an investigation into the Sue Foundation.
According to reports, South Korea's Financial Supervisory Service (FSS) has announced that it will soon launch an investigation into the distribution of Sui Token following allegations made by Democratic Party of Korea representative Min Byong-deek.
Related: South Korea tightens OTC crypto rules as illegal deals reach $4B
Rep. Minns said the Sue Foundation paid itself interest by including coins that should have remained in the uncirculated supply.
“It fell more than 67% within five months of listing. The issuer, Sui Foundation, hoarded the locked-up funds and sold them to increase the turnover,” added Rep. Min.
Additionally, Rep. Means alleged that the reason Sui tokens were reduced was because the foundation “lied about the amount in circulation.”
South Korean lawmakers are stepping up their efforts to better regulate crypto activity in the country following the May 2022 collapse of Do Kwon Terra's money ecosystem. Therefore, the FSS expects to introduce a comprehensive set of crypto rules as early as January. next year.
Cointelegraph reached out to the Sui Foundation for further comment, but did not receive an immediate response.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in.
