Sui Coin is facing a probe by the Financial Supervisory Service (FSS) for allegedly lying about its circulation volume and staking profits.
The Financial Supervisory Service (FSS) is looking into Sui Coin for allegedly lying about its circulation volume and staking revenues. The Joint Council of Digital Asset Exchanges (DAXA), which Sui Coin used to deceive stakeholders about its circulating supply, came under fire from Democratic Party lawmaker Min Byung-deok.
Representative Min Byeong-deok of the Democratic Party of Korea claims that the value of Sui Coin has significantly decreased since its debut in May 2023.
He brought up this concern during the Government Affairs Committee audit on October 17. Byeong-deok stated:
“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,”
Representative Min Byeong-deok asserted that Sui Coin’s false statements about the volume of its circulation, which impact its market value and ranking, are one of the key causes of this decrease.
Furthermore, according to Byeong-deok, the Sui Foundation, the company that created Sui Coin, profited off the Sui Coin that was locked up by staking it and selling more coins to raise the circulation volume.
He also lambasted the Digital Asset Exchange Joint Consultative Body (DAXA), a group of five significant exchanges in charge of listing Sui Coin, for failing to take any action despite having its own set of rules.
