The SUI Foundation has terminated its relationship with the decentralized exchange MovEx.
The move came after MovEx violated the lockup schedule for SUI tokens leading to an oversupply in the open market.
Sui network’s native token SUI has gained more than 4% over the past 24 hours.
Sui Foundation, the organization behind the development of the Sui ecosystem, has terminated its relationship with decentralized exchange MovEx after the latter violated the lockup schedule of the Sui network’s native token SUI. The violation was discovered following an investigation by the foundation that was launched after the crypto community on Twitter accused the Sui team of misrepresenting emissions and dumping locked tokens.
SUI Gains 4% After Dumping DEX MovEx
MovEx dumped hundreds of thousands of the 2.5 million SUI tokens that were given to it under a contractual lockup as payment for its contribution to Sui’s native order book Deepbook, the Sui Foundation stated in a tweet earlier today. MovEx breached the token lockup contract by sending roughly 625,000 SUI tokens to three unique wallets.
The Sui Foundation clarified that it had no knowledge of these transfers. While the 625,000 SUI from the initial transfer remained in the original wallet, the entire allotment of 2.5 million SUI was moved to a qualified crypto custodian by July 3.
The violation of the token lockup schedule prompted Sui to end its relationship with the decentralized exchange. The foundation stated that no additional tokens would be allotted to the MovEx team, and the lockup schedule of the previously allotted tokens would be enforced by the qualified custodian.
At this time, all other tokens subject to contractual lockups are held in qualified custodian accounts that have agreed to enforce the terms of such lockups.”
The investigation into MovEx’s transactions was launched after Crypto influencer DefiSquared accused the Sui team of misrepresenting token emissions and dumping rewards from locked SUI tokens on crypto exchange Binance.
The Sui network’s native token SUI has lost more than 10% of its value over the past week. However, the past 24 hours saw the token gain over 4%. At the time of writing, SUI was trading at $0.644, with a market capitalization of $421 million.