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News

Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

July 27, 2023 - Around 3 mins mins to read

Key Points:

  • The Sui Foundation terminates its partnership with the MovEx team due to violation of contractual lock-up regulations.
  • MovEx received 2.5 million SUI tokens but initiated transactions violating the lock-up without informing the Sui Foundation.
  • All tokens are now held by a qualified custodian, and MovEx will no longer be a main contributor to DeepBook.
The Sui Foundation made a significant announcement regarding its termination of the partnership with the MovEx team. The decision came after MovEx was found to have violated contractual lock-up regulations associated with the SUI tokens it received as compensation for its work on DeepBook.
Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

As per the terms of the agreement, MovEx was subject to a lock-up period during which it was not allowed to initiate transactions involving the received SUI tokens.

Reports indicate that MovEx received a total of 2.5 million SUI tokens from the Sui Foundation in exchange for its contributions to the DeepBook project. However, instead of adhering to the contractual lock-up conditions, MovEx made three separate transactions, each involving 625,000 SUI tokens, to three different wallets. Notably, the final 625,000 SUI tokens from the initial transfer still remain in the original wallet.

The breach of contract raised serious concerns as MovEx failed to inform the Sui Foundation about the transactions that violated the lock-up regulations, and the Sui Foundation did not provide consent for such actions. As a consequence of these actions, the Sui Foundation decided to terminate its association with the MovEx team.

In response to the breach, the Sui Foundation took swift action, requesting MovEx to return the tokens to the primary recipient address. Subsequently, the tokens were transferred to a qualified custodian who would enforce the contractual lock-up restrictions. This move aimed to ensure compliance with the original terms of the agreement.

Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

The Sui Foundation, in its announcement, emphasized the significance of crypto tokens in the blockchain economy, underscoring their crucial role in ensuring network security, operation, and growth. At the genesis of a new chain, native tokens are put into circulation, with additional tokens released as per a predetermined schedule. The tokens available for use in the general marketplace are regarded as the circulating supply.

Presently, all other tokens subject to contractual lock-ups are held in qualified custodian accounts that have committed to enforcing the terms of the locking arrangements, ensuring adherence to the agreed-upon terms.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

DeepBook

MovEx

sui

Sui Foundation

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

Key Points:

  • The Sui Foundation terminates its partnership with the MovEx team due to violation of contractual lock-up regulations.
  • MovEx received 2.5 million SUI tokens but initiated transactions violating the lock-up without informing the Sui Foundation.
  • All tokens are now held by a qualified custodian, and MovEx will no longer be a main contributor to DeepBook.
The Sui Foundation made a significant announcement regarding its termination of the partnership with the MovEx team. The decision came after MovEx was found to have violated contractual lock-up regulations associated with the SUI tokens it received as compensation for its work on DeepBook.
Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

As per the terms of the agreement, MovEx was subject to a lock-up period during which it was not allowed to initiate transactions involving the received SUI tokens.

Reports indicate that MovEx received a total of 2.5 million SUI tokens from the Sui Foundation in exchange for its contributions to the DeepBook project. However, instead of adhering to the contractual lock-up conditions, MovEx made three separate transactions, each involving 625,000 SUI tokens, to three different wallets. Notably, the final 625,000 SUI tokens from the initial transfer still remain in the original wallet.

The breach of contract raised serious concerns as MovEx failed to inform the Sui Foundation about the transactions that violated the lock-up regulations, and the Sui Foundation did not provide consent for such actions. As a consequence of these actions, the Sui Foundation decided to terminate its association with the MovEx team.

In response to the breach, the Sui Foundation took swift action, requesting MovEx to return the tokens to the primary recipient address. Subsequently, the tokens were transferred to a qualified custodian who would enforce the contractual lock-up restrictions. This move aimed to ensure compliance with the original terms of the agreement.

Sui Foundation Cuts Ties With MovEx Team For Flouting Contractual Rules Amidst Controversy

The Sui Foundation, in its announcement, emphasized the significance of crypto tokens in the blockchain economy, underscoring their crucial role in ensuring network security, operation, and growth. At the genesis of a new chain, native tokens are put into circulation, with additional tokens released as per a predetermined schedule. The tokens available for use in the general marketplace are regarded as the circulating supply.

Presently, all other tokens subject to contractual lock-ups are held in qualified custodian accounts that have committed to enforcing the terms of the locking arrangements, ensuring adherence to the agreed-upon terms.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.