Sui Coin is facing a probe by the Financial Supervisory Service (FSS) for allegedly lying about its circulation volume and staking profits. Democratic Party lawmaker Min Byung-deok criticized the Joint Council of Digital Asset Exchanges (DAXA) for failing to take action against Sui Coin, which deceived stakeholders about its circulating supply.
SUI Coin Accused of Deceiving Investors
According to Representative Min Byeong-deok of the Democratic Party of Korea, who raised the issue during the Government Affairs Committee audit on October 17th, there has been a significant drop in the value of Sui Coin since its listing in May 2023.
“It has fallen more than 67% in the five months since listing. The issuer, Sui Foundation, received self-interest by staking (depositing) the locked-up amount and sold it to increase circulation,” said Byeong-deok.
Read Also: Just-In: SUI Price Slumps By 72% Amid Mainnet Launch
Representative Min Byeong-deok claimed that one of the main factors contributing to this decline is that Sui Coin provided false information regarding its circulation volume, which affects its market capitalization and ranking.
Byeong-deok also said that the issuer of Sui Coin, the Sui Foundation, took advantage of the locked-up amount of Sui Coin by staking it and earning profits while selling more coins to increase the circulation volume.
Additionally, he criticized the Digital Asset Exchange Joint Consultative Body (DAXA), which consists of five major exchanges responsible for listing Sui Coin, for not taking any action against such violations despite having their own guidelines in place.
Read Also: SUI Gets Binance Listing; IOU Price Set To Skyrocket
FSS to Investigate SUI Coin for Possible Fraud
In response to Representative Min’s allegations, Director Lee Bok-hyun of the FSS acknowledged that there were issues with Sui Coin’s distribution volume and disclosure practices.
“I think there is a problem with the part you pointed out. We are still requesting that Docsa take action to gain consumer trust. If there is manipulation of distribution volume through staking or unfair disclosure, we will consult and take action. I will do it,” Lee explained.
Additionally, Director Lee mentioned that the FSS would collaborate with relevant authorities and take necessary action if there was evidence of manipulation or fraud by Sui Coin.
Read Also: South Korea to Develop Virtual Asset Listing and Management Regulations
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: