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Sui Foundation Bins MovEx After Violation of SUI Token Lockup Schedule
MovEx had violated the lockup by initiating three transactions of 625K SUI to three unique wallets, sparking concerns around these excess tokens in the open market.
Updated Jul 27, 2023, 11:10 a.m. Published Jul 27, 2023, 11:10 a.m.
Sui Foundation has terminated its relationship with decentralized exchange MovEx after a breach of their contract that caused additional sui (SUI) tokens to be circulated in the open market, the Foundation said earlier this week.
SUI tokens are used to transact and maintain the recently-launched Sui Network, a low-cost blockchain founded by ex-Meta Platforms (META) employees.
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MovEx received some 2.5 million SUI, worth $1.6 million at current prices, from the Sui Foundation as payment for its work on exchange product DeepBook, subject to a contractual lockup that allowed the tokens to be unlocked at certain periods in the future.
However, MovEx violated the lockup by initiating three transactions of 625,000 SUI to three unique wallets, Sui Foundation said, sparking immediate concerns across the crypto community on Twitter.
Exclusive new research on SUI:
— DeFi^2 (@DefiSquared) June 27, 2023
Intentionally misrepresented emissions and proof the team themselves are dumping rewards from *locked* and *non-circulating* staked SUI onto Binance. (1/12) pic.twitter.com/jYRyeTFY56
“MovEx did not make Sui Foundation aware of the three transactions in violation of the contractual lockup, and the Sui Foundation did not consent to them,” the Foundation said.
“By July 3, upon Sui Foundation’s request, MovEx had moved the entire allotment of 2.5M tokens to a wallet custodied at a qualified custodian who will release them according to the contractual lockup schedule in compliance with the previously released token emissions schedule,” it added.
No additional SUI tokens will be distributed to MovEx nor will MovEx remain one of the main contributors to DeepBook, Sui Foundation further stated.
Meanwhile, MovEx did not push back or deny Sui Foundation’s actions on Thursday, stating it would continue to operate.
“By the time we received the SUI tokens transferred to our wallet, we distributed the tokens to custodian and non-custodian wallets,” MovEx said.
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