Sui Foundation Faces Probe: Token Price Hits All-Time Low

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Fredrik Vold

Fredrik Vold

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October 23, 2023 04:20 EDT

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The small-cap crypto token Sui is facing turbulent times as its price hits all-time lows.

As of press time on Thursday, the price of SUI was down close to 1% for the day and down 9.4% for the past seven days, hitting its lowest levels ever.

The cause of the decline is tied to reports in local media of an investigation by South Korea’s Financial Supervisory Service into potential manipulation claims surrounding the Sui token.

According to the reports, the investigation was initiated following allegations made by a Democratic Party of Korea lawmaker, Representative Min Byung-deok, that the Sui Foundation had staked coins, which should have remained uncirculated, to pay itself interest.

Subsequently, the foundation purportedly increased the circulation of Sui by selling the coins it had received as interest on the market.

Responding to these allegations, the Sui Foundation issued a statement on X categorically denying the claims as “unfounded and materially false.”

They emphasized that no Sui tokens had been sold by the Foundation after the initial Community Access Program (CAP) distributions, and maintained that the circulating supply schedule displayed on their website was accurate.

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

This situation has already led to a sharp decline in Sui’s price, raising concerns among investors and community members that the entire Sui project could collapse.

Sui’s value has now reached a critical point, and the outcome of the regulatory investigation could significantly impact its future performance.