Sui Network Faces Allegations of Fraud in South Korea
Sui Network, a layer 1 blockchain, has come under scrutiny from South Korean regulators who suspect the developers of misleading investors. The Financial Supervisory Service (FSC) plans to launch an investigation into whether SUI is operating as a fraudulent scheme. The main concern stems from the significant drop in SUI’s price, which has lost over 91% of its value. The Sui Foundation, however, denies these allegations.
Accusations by South Korean Authorities
The South Korean regulator claims that the Sui team made false claims about the circulating supply and failed to address the issue. Democratic Party lawmaker Min Byung-deok criticized the Sui Foundation for unblocking a portion of the supply and selling it to inflate the circulating amount for personal gain. Digital Asset Exchange Alliance (DAXA) also faced criticism for neglecting to verify SUI’s circulating supply.
Regulator Urges Rebuilding Consumer Trust
FSC Director Lee Bok-hyun called on DAXA to implement measures to regain consumer trust and warned against any manipulation of distribution volume. He also highlighted institutional limitations and the need for further discussion in legislation to supervise primary markets and exchanges.
SUI Foundation Denies Allegations
The SUI Foundation responded to the accusations, stating that they were unfounded and inaccurate. They clarified that they have not liquidated any SUI tokens received as staking rewards and emphasized their transparent communication with the community regarding the token’s circulating supply schedule.
Hot Take: Allegations of Fraud Surround Sui Network in South Korea
The Sui Network, a layer 1 blockchain, is facing allegations of fraud in South Korea. Regulators have accused the Sui Foundation of misleading investors and inflating the circulating supply of the SUI token for personal gain. The drop in SUI’s price has raised concerns, leading to an investigation by the Financial Supervisory Service. While the Sui Foundation denies the allegations, there is a need for greater transparency and verification in the cryptocurrency industry to rebuild consumer trust. The outcome of this investigation will have significant implications for the future of Sui Network and its reputation in South Korea.
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