Sui Foundation Terminates Relationship with MovEx After Lockup Violation
The Sui Foundation has ended its partnership with MovEx, a decentralized exchange, due to a breach of their contract. MovEx was found to have initiated three transactions of 625,000 SUI tokens to three separate wallets, violating the contractual lockup agreement. This action has raised concerns about the excess tokens now circulating in the open market.
Key Points:
– SUI tokens are used for transactions within the Sui Network, a low-cost blockchain founded by ex-Meta Platforms employees.
– MovEx received 2.5 million SUI tokens, valued at $1.6 million, from the Sui Foundation as payment for their work on DeepBook.
– The tokens were subject to a lockup agreement, but MovEx violated this agreement by initiating the unauthorized transactions.
– The Sui Foundation was not made aware of these transactions and did not give consent for them.
– MovEx has moved the entire allotment of tokens to a qualified custodian in compliance with the lockup schedule, as requested by the Sui Foundation.
MovEx has not disputed the actions taken by the Sui Foundation and has stated that it will continue to operate. However, the foundation has made it clear that no additional SUI tokens will be distributed to MovEx, and MovEx will no longer be a major contributor to DeepBook.
Hot Take
This breach of contract by MovEx has raised concerns within the crypto community about the integrity and trustworthiness of decentralized exchanges. It highlights the need for stricter regulations and accountability in the crypto industry to prevent such incidents from occurring in the future. It also serves as a reminder to investors to thoroughly research and vet any platforms they choose to engage with in order to protect their assets.
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