Sui’s native SUI token has struggled to regain ground after plunging more than 9% amid allegations from South Korean regulators. The regulators have accused the Sui Foundation of manipulating the token’s supply for its own gain.
The SUI token gained a little under 1% in the last 24 hours after falling from $0.41 on Oct. 16 to new lows of $0.37 on Oct. 18. According to CoinGecko data, current prices have declined 7% in just two days.
On October 18, the Sui Foundation addressed these allegations on X (formerly Twitter), labeling them as “unfounded and materially false.” The foundation emphasized its commitment to compliance and transparency and refuted claims of unauthorized token sales post their initial Community Access Program distribution. According to the foundation, their publicly accessible supply schedule and API data confirm the accuracy of the circulating tokens.
“We want to address some inaccuracies that have been reported today,”
said the Sui Foundation.
“The unfounded and materially false statements surrounding the supply of SUI tokens need to be addressed. The Foundation has never sold SUI tokens after the initial Community Access Program (CAP) distributions. Period,” it explained.
We want to address some inaccuracies that have been reported today.
Sui Foundation has been and remains committed to cooperating with DAXA and its member exchanges in the spirit of full compliance and transparency.
The unfounded and materially false statements surrounding the…
— Sui Foundation (@SuiFoundation) October 17, 2023
“The circulating supply schedule displayed on the Sui Foundation public website and available through the public API endpoints is accurate.”
The Sui Foundation’s stalwart post came in response to reports from South Korean news outlets TechM and Block Media that regulators from the country had launched an investigation into the Sui Foundation.
Reports from TechM and Block Media indicated that the South Korean Financial Supervisory Service (FSS) will investigate the Sui Foundation, following statements from Rep. Min Byeong-deok. Min asserted that the foundation had improperly benefited from staking non-circulating tokens.
Rep. Min claimed that the Sui Foundation had paid itself interest by staking coins that should have remained in the non-circulating supply.
“It has fallen more than 67% in the five months since listing. The issuer, Sui Foundation, received self-interest by staking (depositing) the locked-up amount and sold it to increase circulation,” Rep. Min added.
Additionally, Rep. Min alleged that the reason for why the Sui token had plummeted was because the foundation had “lied about the amount in circulation.”
South Korean lawmakers have ramped up their efforts to better regulate crypto activity in the country following the collapse of Do Kwon’s Terra Money ecosystem in May 2022. As such, the FSS expects to introduce a comprehensive set of crypto legislation as early as January next year.
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