In recent weeks, the Sui Foundation has faced significant scrutiny due to reports on fake circulation volume. According to a local media outlet, President Lee Book-hyun of the Financial Supervisory Institute has announced a thorough investigation into a staggering $600 million circulation discrepancy linked to the cryptocurrency SUI during Upbit’s initial launch.
Sui Reported Fake Circulation During Upbit’s Launch
Lee Bok-hyeon, the head of the Financial Supervisory Service, acknowledged the issue surrounding Sui Coin’s circulation volume and stated, “We are aware of the problem that there may be victims.” He further commented, “We will strengthen cooperation with the investigation team and thoroughly examine it.”
During a comprehensive audit of the National Assembly’s Political Affairs Committee on the 27th, Director Lee pointed out, “There is a difference of 600 million between Sui Coin’s circulation volume when it was listed on Upbit and the recently announced amount.”
Responding to Min Byeong-deok, a member of the Democratic Party of Korea, who inquired, “Shouldn’t the Financial Supervisory Service take action?” Director Lee explained, “We are looking into the relevant situation following discussions during the last Financial Supervisory Service inspection.”
He also mentioned, “Regarding Daksa, unlike the past case with Wemix, we have observed discrepancies in the numbers presented in the white paper itself. It may not be accurate, but we have discovered various controversies surrounding the figures related to staking.”
Lee said, “In conclusion, we are conscious of the fact that there may be victims during the (staking) process. We will take a close look at strengthening cooperation with the virtual asset damage reporting center or investigation team established internally. I will see.”
Sui Faces Investigation From FSS
The Financial Supervisory Service (FSS) has initiated an investigation into Sui Coin over allegations of providing false information regarding its circulation volume and staking profits. Democratic Party legislator Min Byung-deok expressed dissatisfaction with the Joint Council of Digital Asset Exchanges (DAXA) for not taking any action against Sui Coin, which had misled stakeholders regarding its circulating supply.
Representative Min Byeong-deok highlighted Sui Coin’s false circulation volume information as a key factor contributing to its decline, impacting its market capitalization and ranking. He also criticized the Sui Foundation for profiting from staking locked-up Sui Coins while increasing circulation.
Min expressed disappointment in the Digital Asset Exchange Joint Consultative Body (DAXA), consisting of major exchanges listing Sui Coin, for not enforcing their guidelines. In response, FSS Director Lee Bok-hyun acknowledged issues with Sui Coin’s distribution and disclosure practices. He pledged cooperation with relevant authorities and potential action if manipulation or fraud evidence emerged regarding Sui Coin.
Following this news, Sui recently hit its all-time low of $0.36. However, the Sui Foundation denied the above allegations. Sui vehemently denied the allegations of supply manipulation, deeming them “baseless and substantially inaccurate.”
The Sui Foundation stated, “We feel compelled to correct certain inaccuracies that have recently surfaced. It is imperative to address the erroneous and substantially untrue assertions regarding the SUI token supply. To clarify, the Foundation has not conducted any SUI token sales following the initial Community Access Program (CAP) distributions. This is a definitive fact.”
The firm response from the Sui Foundation was prompted by reports from South Korean news sources TechM and Block Media, which had indicated that South Korean regulators had initiated an inquiry into the activities of the Sui Foundation.
