The Sui Foundation, the non-profit organization responsible for the Sui Network, has terminated its partnership with MovEX, a decentralized exchange (DEX) and liquidity management platform. The decision comes after MovEX violated a lockup agreement by moving Sui tokens (SUI) without the consent of the Sui Foundation.
The violation sparked accusations of misrepresented emissions from the crypto community. In response, the Sui Foundation decided to cut ties with MovEX. The foundation stated in a blog post that MovEX executed transactions involving SUI tokens that were subject to a lockup period, without seeking consent from the organization.
MovEX had been an early contributor to the Sui Network, serving as a core builder for the network’s DeepBook. This decentralized central limit order book was created to enhance the ecosystem. During the mainnet launch in May, 5.15% of the total SUI supply was in circulation, with the remaining tokens released on a preset schedule to early contributors in order to maintain network stability.
However, in June, a Twitter user accused Sui of intentionally misrepresenting token emissions and dumping rewards from locked, non-circulating staked SUI on the Binance crypto exchange. Further investigations revealed that MovEX was responsible for the transactions that led to these accusations. Out of the 2.5 million SUI tokens received as payment for contributing to DeepBook, MovEX initiated three transactions of 625,000 SUI each to different wallets, while leaving the rest in the original wallet.
As a result of the breach of the contractual lockup and failure to seek consent, the Sui Foundation decided to end its relationship with MovEX. The foundation has requested that the 2.5 million SUI tokens be moved to a qualified custodian who will release them according to the token emission schedule.
MovEX responded to the announcement on Twitter, explaining that the tokens were distributed to custodian and non-custodian wallets. They expressed their understanding of the termination of the partnership and thanked the community for their support.
The Sui Foundation reassured the crypto community that all other tokens subject to contractual lockups are held in qualified custodian accounts that have agreed to enforce the terms of the lockups.
This development highlights the importance of trust and compliance within the crypto space. Violating contractual agreements can have serious consequences for partnerships and reputation. The Sui Foundation’s decision to terminate its partnership with MovEX serves as a reminder to all participants in the industry to uphold their commitments and seek consent when making important decisions regarding token movements.