Sui, a South Korean cryptocurrency, is under investigation by the Financial Supervisory Service (FSS) for allegedly misleading investors about circulation volume and staking profits. Following this news, there was a sharp decline in the altcoin price. Then a statement came from the project team.
South Korean Investigation into altcoin projectthe price dropped sharply
Min Byung-Deok of the Democratic Party of Korea criticized the Digital Asset Exchange Joint Advisory Board (DAXA) for not taking action against Sui Coin despite having its own guidelines. Lee Bok-hyun, director of the FSS, confirmed that there are problems with the cryptocurrency’s distribution and disclosure practices. He also promised to cooperate with relevant authorities if evidence of manipulation or fraud emerges.
According to Token.unlocks, $336 million worth of unlocks have been made since the token was released. Additionally, $72 million is allocated to token subsidies. $129 million worth of tokens went to the community reserve. Finally, the altcoin project distributed $139 million worth of tokens to its community access program. Meanwhile, Series A and Series B investors will be able to access their tokens in July 2024. Additionally, the plan includes unlocking tokens worth $290 million.
Blockchain’s native token SUI, built by former Meta (META) employees, fell as much as 9% in price after the director of South Korea’s Financial Supervisory Service said he would check whether Sui’s team was manipulating the token supply. SUI is trading at $0.3796, according to CoinMarketCap. This is a price close to its all-time low.
Sui Foundation denied the allegations
The regulator’s director, Lee Bok-Hyeon, announced that the team would “examine” SUI’s behavior to see whether it had deliberately inflated the supply “through staking or unfair disclosure.” Sui Foundation denied the allegations in a later statement. In this regard, the altcoin team shared the following statements:
The Sui Foundation wishes to address false and materially false statements surrounding the offering of SUI tokens. According to a Sui Foundation spokesperson, contrary to recent assumptions, there has never been a sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions. In addition, Sui Foundation is committed to cooperating with DAXA and its member exchanges in the spirit of full compliance and transparency. Moreover, he maintains this determination. The circulating supply schedule displayed on the Sui Foundation’s public website and accessible via public API endpoints is accurate.
The blockchain company said in a statement in June that it “does not sell staking rewards or any other tokens from staked SUI that are not locked and in circulation on Binance or otherwise.” Decentralized finance (DeFi) researcher DefiSquared claimed that SUI “intentionally misrepresented emissions.” He also claimed that he “threw the tokens to Binance.” The comments in question from the team of the Altcoin project came upon these allegations.
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