Sui Foundation has cut ties with the decentralized exchange after discovering that MovEx tampered with the tokens involved in a $2.5 million deal.
Sui Foundation, a service platform that provides crypto mining solutions, has announced that it has terminated its partnership with MovEx, a decentralized exchange, due to multiple contract violations.
The Foundation had paid $2.5 million worth of SUI tokens to MovEx for developing DeepBook, the network’s native order book.
MovEx’s contract breach
According to the Foundation, the contract stipulated that the funds provided by the Foundation would be temporarily locked up until the completion of the project.
The Foundation entrusted MovEx with considerable responsibility and expected them to deliver DeepBook, a shared, decentralized central limit order book (CLOB) built for the Sui ecosystem.
However, things took an unexpected turn when the Foundation discovered that MovEx had breached the terms of the agreement on three separate occasions by tampering with portions of the tokens involved.
According to the Foundation, it was alerted by rumors circulating about unlocked tokens being openly traded on the market.
The Foundation expressed its shock and disappointment at MovEx’s actions, which violated the trust and goodwill between the parties. It said it had no choice but to end its relationship with MovEx and seek legal recourse.
Sui’s Token security measures
The Foundation acted swiftly to secure all MovEx’s tokens and transfer them to a custodian wallet. This measure ensures that the tokens stay safe until their scheduled release per the initial agreement’s terms.
Sui also took additional precautions to ensure that all other tokens subject to lockups are in the custody of trusted custodians.
The Foundation further revealed that it had filed an official report with the relevant authorities and initiated an investigation into MovEx’s activities. And that it would pursue all legal options available to protect its interests and reputation.
DeepBook development plans
The severance of ties between the Foundation and MovEx has sent shockwaves through the cryptocurrency community.
Many had anticipated a fruitful collaboration that would benefit the development of DeepBook, but these recent revelations have significantly changed the landscape.
However, the Foundation remains resolute in its commitment to DeepBook. While the setback with MovEx may have caused some concern, the Foundation is actively exploring alternative partnerships to continue the progress of DeepBook.
The Foundation said it had already identified several potential candidates and would announce them soon. It also emphasized that this development would not affect the project’s timeline and assured the community of its dedication to fulfilling its promises.
DeepBook, according to the Foundation, is a vital component of the Sui ecosystem and would provide a one-stop shop for trading digital assets with low latency and high execution.
It would launch as an MVP on Sui Testnet Wave 3 and be ready for the Sui Mainnet launch.
