SUI Coin faces allegations of fraud, with its price hitting an all-time low at $0.367. South Korean regulators are investigating to prevent market instability.
SUI Coin Accused of Fraud
Shedding some light on the controversy, representative Min Byeong-deok of the Democratic Party of Korea alleged that the Foundation’s actions had caused dissatisfaction among investors, as SUI’s price fell 67.1% in five months. In the doctrine, Min criticized the Digital Asset eXchange Alliance (DAXA) for not addressing the price decline, comparing it to “leaving the fish to the cat.” He claimed that the Foundation profited from staking coins that shouldn’t have been in circulation and sold the coins received as interest on the market.
SUI Foundation Denied Such Claims
The Sui Foundation refuted the allegations in response, stating they are “unfounded and materially false.” They maintain that the Foundation has not sold SUI tokens after the initial Community Access Program (CAP) distributions. The South Korean Financial Supervisory Service (FSS) chairman has indicated that the regulator may inspect DAXA if allegations of manipulation are confirmed.
📉 $102.4K $SUI SHORTED @$0.37022 MEXC FUTURES 📉
— TheCoinMonitor (@TheCoinMonitor_) October 18, 2023
The Sui Foundation emphasized that the circulating supply schedule displayed on its website is accurate and has not been altered. The Sui blockchain was developed by technology leaders from Meta, known for the Libra Blockchain and Move Programming language, and is supported by respected experts in distributed systems, programming languages, and cryptography.
The South Korean Financial Supervisory Service (FSS) is considering an inspection if allegations of manipulation and unfair disclosure are proven. Furthermore, Director Lee has also confirmed that the FSS stands ready to work closely with relevant authorities and will take decisive action if any evidence of manipulation or fraud involving Sui Coin comes to light.
This situation unfolds as South Korea works to regulate its cryptocurrency market and prevent illegal activities following the collapse of the Terra ecosystem last year.
The allegations surrounding SUI Coin have cast a shadow over the project’s credibility. While the Sui Foundation vehemently denies any wrongdoing, the investigation by South Korean regulators will be crucial in determining the truth. Investors are understandably concerned, given the significant drop in SUI’s value in recent months.
It remains to be seen how this controversy will impact the long-term prospects of SUI and the broader cryptocurrency market in South Korea. Transparency and regulatory compliance will be key factors in restoring trust among investors and ensuring the stability of digital assets in the region.
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