The price of SUI experienced significant volatility after facing an investigation by the South Korean Financial Supervisory Service (FSS). The FSS suspects SUI of manipulating the circulating supply of tokens in the project.
In response to questions from lawmaker Min Byung-deok, FSS Director Lee Bok-hyun affirmed the intention to investigate the manipulation of SUI’s circulating supply, as reported by blockmedia.
During the parliamentary inspection, a member of the Democratic Party of South Korea criticized Lee Bok-hyun for not protecting investors while granting listings for “Burger Coin” types, notably SUI, on exchanges.
Min argued that the circulating supply was a factor preventing SUI’s price from rising. Additionally, he accused the Sui Foundation of participating in the staking process, subsequently releasing tokens into the market, increasing circulation, and causing a price “dump.”
In response to the criticism, FSS Governor acknowledged that if Min Byung-deok’s claims were accurate, it would be a significant issue. Lee Bok-hyun pledged to review the matter and conduct examinations of exchanges through the Association of Cryptocurrency Exchanges (DAXA).
Previously, SUI had been accused of “sell-off” from staking rewards on Binance, but the project denied the allegations. Following this news, SUI experienced a sharp drop of nearly 15%, falling from $0.43 to $0.369. In South Korea, SUI is listed on five exchanges, including Upbit, Bithumb, Coinone, Kobit, and Gopax.
SUI is a blockchain utilizing the Move programming language developed by Facebook, similar to Aptos. In 2022, the project raised $300 million with a valuation of up to $2 billion. However, SUI has consistently lost value post-mainnet launch, largely due to the pressure of selling unlock tokens for the Community Reserve.
In an official statement on Twitter, Sui Foundation refuted claims of manipulating SUI’s supply, selling SUI staking, and asserted transparency in token transfer activities. The foundation stated its close collaboration with DAXA to ensure compliance with South Korean laws.