Sui Foundation Token Transfers Draw Exchange Scrutiny

Key Points:

• Sui Foundation Token Transfers to Binance, OKX, and Bybit Raise Concerns Since June, over 82.6M SUI tokens were redeemed and moved to major exchanges.

Over 82.6M SUI tokens linked to Sui Foundation Token Transfers were withdrawn and sent to Binance, OKX, and Bybit. On-chain data reveals multiple wallets, including transit wallet 0xbe90…950aa8, facilitating high-frequency transfers during the token movement.

Sui Foundation Token Transfers Tracked to Multiple Wallets and Exchanges

An on-chain investigation started in June 2024, when 82.6 million SUI tokens (approximately $184 million) were redeemed from the staking account 0x7f3b…3239e4. They were slowly transferred to Binance, OKX, and Bybit through intermediary wallets in small but frequent transfers. The original SUI tokens came from the wallet of the Sui Foundation: 0x341f…17fae1, which initially held more than 3 billion SUI and still contains 2.36 billion SUI locked, including rewards.

Key transactions started with the staking account 0x7f3b…3239e4, which currently takes 183 million SUI tokens worth approximately $418 million across validators like Staking Facilities, Everstake, P2P ORG, and Figment. A key intermediary wallet—0xbe90…950aa8—served as a transit address. From this address, 82.6 million SUI were divided up and sent in smaller batches to a distribution wallet: 0x457f…6715e7, directly connected with Binance, OKX, and Bybit exchanges.

Key Wallets Involved:

• Sui Foundation’s Wallet: 0x341fa71e4e58d63668034125c3152f935b00b0bb5c68069045d8c646d017fae1
• Staking Account: 0x7f3b918653aacd4289b7e471aea588b34d497df0e1540c2d22eadacccd3239e4
• Transit Wallet: 0xbe90dbe25c747f23e7b93f8948f240a90aa106597b7dab0b33e852b0b1950aa8
• Distribution Wallet to CEXs: 0x457fd3e8295543c23cfc2182b33247338cb04ddf43d0afa02a34591fd67415e7

These transfers began whispers of insider trading. Crypto sleuth Light (@lightcrypto) claimed that SUI insiders sold $400 million of their tokens at the asset’s peak. However, the Sui Foundation moved to contest this fact, stating the transaction involved infrastructure partners on a lock-up period, not employees or insiders.

Read more: Sui Insider Trading Was Denied Amid SUI Token Rally

Sui Token Transfers Spark Transparency Concerns Amid Exchange Movement

On-chain data of SUI token activities then became a point of interest, as evidence reveals that tens of millions of SUI tokens were transferred by wallets related to the Sui Foundation to major exchanges. Originating from the foundation’s main wallet, 0x341f…17fae1, some 310 million SUI tokens were first transferred to the staking account 0x7f3b…3239e4. In June 2024, over 82.6 million SUI tokens were redeemed and transferred through the transit wallet 0xbe90…950aa8 to Binance, OKX, and Bybit.

While Upbit was showing relatively high volumes for the SUI initially, it was also well documented that those trades skipped Upbit altogether, likely for reasons including Travel Rules and other compliance regulations around cross-border crypto asset transfers.

While analysts recognize such a move as strategic management of one’s token supply, they also raise concerns about market manipulation and insider selling. According to South Korean media Block Media, the Sui Foundation faced criticism in the Korean National Assembly over opaque token allocation practices.

On-chain analysts currently closely track wallet activities and the involvement of large validators such as Everstake and Figment. The reluctance of the Sui Foundation to fully disclose details about token flows again raises concerns about crypto governance and accountability.