Sui Foundation has officially cut ties with MovEX amidst allegations of "sneaky selling" SUI staking rewards on Binance. Learn about the events that led to the partnership termination in this article.
The Sui community was recently shaken when Sui Foundation responded to allegations suggesting that they were engaging in questionable practices with their SUI staking rewards on Binance. Denying these accusations, the Sui Foundation pointed fingers at MovEX, a DeFi project they had partnered with. This article delves into the details of what transpired between the Sui Foundation and MovEX, leading to their decision to part ways.
Initially, some members of the Sui community raised concerns that the Foundation might be secretly selling staking rewards on the Binance exchange. These suspicions were sparked when the famous Twitter account @defisquared revealed that 2.5 million $SUI tokens were transferred from the Sui Foundation staking address to Binance on May 31.
In response to the allegations, Sui Foundation vehemently denied engaging in any covert token sales. They assured the community that their "internal" token adheres to a strict locking schedule, prohibiting unauthorized transfers. The transactions related to wallet addresses that raised doubts within the community were shown to be in line with this protocol, further reinforcing their commitment to transparency and fairness.
Surprisingly, Sui Foundation pointed towards their collaboration with MovEX as a potential cause for the unauthorized token transfers. MovEX, being the first DEX project developed on the Sui blockchain, aimed to provide the community with an exceptional trading experience and enhanced liquidity for users and developers alike.
Specifically, their statement is as follows:
"Following a series of tweets on June 27, Sui Foundation found that MovEx, who had received SUI tokens subject to a contractual lockup as payment for its work on DeepBook, had initiated transactions to wallets in violation of its contractual lockup. MovEx did not notify Sui Foundation of the transactions, and Sui Foundation did not in any way consent to them. At Sui Foundation’s request, MovEx returned the tokens to the primary recipient address and then transferred them to a qualified custodian to enforce the contractual lock-up restrictions.
Due to MovEx’s breach of contract, Sui Foundation has terminated its relationship with the MovEx team. No future tranches of SUI tokens will be distributed to MovEx nor will MovEx remain one of the main contributors of the DeepBook smart contract.
At this time, all other tokens subject to contractual lockups are held in qualified custodian accounts that have agreed to enforce the terms of such lockups."
Amidst growing uncertainty, Sui Foundation took the decisive step of terminating their partnership with MovEX. They stated that they had retrieved the 2.5 million SUI tokens invested in the project and had dissociated themselves from the MovEX team entirely. The partnership dissolution also involved removing MovEX from the developer list of related projects.
In the wake of the termination, MovEX acknowledged the partnership's end through a tweet. However, the project did not elaborate on the accusations or offer any further explanation for the alleged "sneaky sale." Nonetheless, they assured their community that they would continue the project's development despite the recent events.
The recent turmoil between Sui Foundation and MovEX has undoubtedly raised questions about transparency, accountability, and due diligence within the blockchain community. While Sui Foundation denies any involvement in unauthorized token transfers and maintains its commitment to a stringent locking schedule, the exact circumstances surrounding the allegations remain murky.
As the community awaits further developments, it's essential to remember that blockchain ecosystems must prioritize transparency, open communication, and responsible practices to foster trust and sustainable growth. Only time will reveal the true underlying factors that led to this unfortunate turn of events.
Be sure to check out Suipiens' website and social media channels to stay up-to-date on all things about Sui Blockchain!