Sui Foundation convicted the MoveEx exchange of violating the contract
Date: 2023-07-28 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
The decentralized exchange MoveEx brought SUI tokens to third-party wallets without the demand of the Sui Foundation
The Sui Foundation accused decentralized exchange MoveEx of violating the terms of the deal. This was reported by representatives of the organization in the project blog. According to the Sui Foundation, MoveEx representatives unilaterally withdrew 625,000 SUI (~$400,000) to third-party wallets. The Sui Foundation claims that the exchange did not have the right to withdraw tokens without discussion with the organization.
At the beginning of 2023, the Sui Foundation issued 2.5 million SUI (~$1.6 million) to MovEx for the development of the DeepBook exchange-traded product. The main condition for the investment was the blocking of tokens for a pre-agreed period. From the statements of the Sui Foundation, it follows that the exchange did not notify the organization of its operations in any way. As a result of unauthorized transfers, the Sui Foundation announced that it had terminated the contract with MoveEx. The exchange will no longer receive tokens from the organization to develop products in the Sui ecosystem.
MoveEx did not deny the accusations of the Sui Foundation. Representatives of the exchange said that from the very beginning they distributed tokens between depository and non-depository wallets. However, at the request of the Sui Foundation, the entire amount of 2.5 million SUI was transferred to the wallets of a qualified depository. It is unclear what kind of service we are talking about.
In mid-July, the cryptocurrency community suspected the Sui ecosystem of imitating on-chain activity. According to trader Andrew Kang, Sui is winding up the numbers, because the market "does not understand the reliability of transactions." Some crypto enthusiasts supported Kang and called the activity "inorganic and manipulated."
Recall that Sui is a Layer 1 blockchain created to serve high-performance decentralized applications. The operation and security of the network is provided by the Proof-of-Stake consensus algorithm.
