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The Sui Foundation, the non-profit entity responsible for the Sui Network, has ended its collaboration with MovEX, a decentralized exchange (DEX) and liquidity management platform, due to a breach of a lockup agreement.
As stated in a blog post by the Sui Foundation, MovEX transferred some Sui tokens (SUI) that were bound by a contractual lockup without notifying or obtaining approval from the organization, leading to allegations of misrepresented emissions from the cryptocurrency community.
Sui Foundation Terminates Partnership With MovEX
MovEX was an initial contributor to Sui during its mainnet launch in May, acting as a key developer for the network’s DeepBook, a collaborative decentralized central limit order book designed for the ecosystem.
At that time, 5.15% of the total SUI supply was circulating, while the remainder was scheduled for release to early contributors to ensure network stability. The tokens were under a lockup period consistent with the release schedule.
However, in June, the anonymous Twitter user DefiSquared accused Sui of deliberately misrepresenting token emissions and selling rewards from locked, non-circulating staked SUI on the crypto exchange Binance.
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Following multiple investigations, the Sui Foundation found that MovEX carried out the transactions that prompted the allegations. Of the 2.5 million SUI received as compensation for its contribution to DeepBook, the decentralized exchange initiated three transactions of 625,000 SUI to three separate wallets, retaining the remainder in the original wallet.
The Sui Foundation has severed its ties with MovEX due to the DEX’s violation of the contractual lockup and its failure to seek approval prior to executing those transactions. Earlier this month, the foundation requested MovEX to transfer the 2.5 million SUI to a qualified custodian who would release them according to the token emission schedule.
MovEX Responds
In reaction to the Sui Foundation’s announcement, MovEX took to Twitter to clarify that it had merely distributed the tokens to both custodian and non-custodian wallets.
“We would like to express our understanding regarding the conclusion of our partnership with Sui. We deeply value the journey filled with dedication, hard work, and honors, and we are truly appreciative of the support we received from the community,” MovEX stated.
The Sui Foundation has assured the cryptocurrency community that “all other tokens subject to contractual lockups are held in qualified custodian accounts that have agreed to enforce the terms of such lockups.”
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