The Sui Foundation denied allegations of insider trading involving the sale of $400 million worth of SUI tokens. These claims surfaced against the backdrop of a remarkable 108% increase in SUI’s price over the past month. 

In a statement released on October 15, the foundation clarified that no employees or investors from Mysten Labs, the company behind the Sui blockchain, were involved in any token sales.

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. 

In their post, Lightcrypto asserted:

“It does not bring comfort that the people building this ecosystem, the people who arguably know this token's value best, are unloading hundreds of millions of dollars of the token into less informed buyers chasing momentum.”

Lightcrypto did not disclose specific wallet addresses but suggested that these wallets were connected to insiders involved in the Sui initial coin offering (ICO). Their remarks questioned not only the actions of the supposed insiders but also the actual potential of the Sui blockchain compared to its soaring valuation.

The Foundation's Response

In response to the allegations, the Sui Foundation issued a statement categorically denying any wrongdoing. They emphasized that:

• No Sales by Insiders: The foundation 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.

• Potential Infrastructure Partner Involvement: 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 by the Sui Foundation to ensure compliance.

The Sui Foundation encouraged a more transparent dialogue regarding the Sui ecosystem and the market dynamics that influence token sales.

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, which reported a TVL of $509 million, marking a monthly increase of 50%. Another lending platform, Suilend, saw its TVL rise significantly to $260 million, with 78% increase over the previous month.

Adding to the growing activity in the DeFi space, the Sui Foundation recently announced that USD Coin (USDC) will be integrated into the Sui Network.