The Sui Foundation has responded to allegations of insider selling involving $400 million worth of SUI tokens, which emerged amidst the significant rise in token prices.

Allegations of Insider Selling

The controversy began when crypto analyst Lightcrypto claimed that wallets linked to the Sui Foundation had sold over $400 million worth of SUI tokens during the recent price surge. Lightcrypto did not disclose specific wallet addresses but suggested that these wallets were connected to insiders involved in the Sui ICO.

The Foundation's Response

The Sui Foundation issued a statement categorically denying any wrongdoing. They clarified that neither its employees nor any investors connected to Mysten Labs sold $400 million in tokens during the recent price surge. They stressed that no insiders engaged in preemptive selling or violated lockup agreements regarding token circulation. The foundation speculated that the wallet responsible for the alleged sales likely belonged to an infrastructure partner, not to insiders. They confirmed that all token lockups are enforced by qualified custodians and are continuously monitored.

Growth of the Sui Network

The Sui Network recently achieved a major milestone, with the Total Value Locked (TVL) on the platform reaching $1.772 billion, as reported by DeFiLlama on Oct. 15. Among the key contributors to this success is the NAVI Protocol, with a TVL of $509 million and a 50% monthly increase, and the lending platform Suilend, whose TVL rose significantly to $260 million with a 78% increase over the previous month. Additionally, the integration of USD Coin (USDC) into the Sui Network was recently announced.

The Sui Foundation calls for more transparent dialogue regarding the Sui ecosystem and market dynamics influencing token sales.