The Sui Foundation has denied allegations that insiders sold $400 million worth of SUI tokens during the recent price surge, asserting that lockups are being properly enforced.

The Sui Foundation has found itself in hot water after a crypto analyst raised concerns about alleged insider token sales during the recent surge in Sui’s price.

In a Monday tweet, on Oct. 14, pseudonymous analyst Lightcrypto claimed that “insiders” sold $400 million worth of (SUI) tokens, linking specific wallets associated with the initial coin offering to the alleged sales. Lightcrypto’s assertions sparked debate within the crypto community, as the analyst questioned the integrity of those building the Sui ecosystem.

“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 token into less informed buyers chasing momentum.”

Lightcrypto

In response, the Sui Foundation issued a statement on Oct. 15, refuting the claims, emphasizing that neither its employees nor investors associated with Mysten Labs, which developed the Sui blockchain, engaged in any such selling. The Foundation clarified that all token lockups are “enforced by qualified custodians and continuously monitored by Sui Foundation […].”

While the foundation did not specify any individuals, it suggested that Lightcrypto may have been referring to a wallet controlled by an “infrastructure partner” who holds tokens under a lockup schedule. Following this statement, the price of SUI fell by 1.7% to $2.21. Nevertheless, the token has seen a significant increase of 106% over the past 30 days, according to data from crypto.news’ price page.