After a serious violation of their contractual commitments, the Sui Foundation has formally dissolved their cooperation with the decentralised exchange MovEx, media reports said.
In exchange for their hard work on the native order book for the network, DeepBook, the foundation reportedly gave MovEx 2.5 million SUI tokens in a recent blog post. But there was a catch: the contract locked up the funds to prevent any unauthorised transfers.
Unfortunately, it has come to light that MovEx carried out not one but three transactions that transferred substantial quantities of the tokens without the Sui Foundation’s permission, in violation of this lockup agreement. As a result, the organisation realised it had to move swiftly and cut relations with the MovEx group. This means that MovEx is no longer a major contributor to DeepBook and that they will not get any further SUI tokens.
To ensure the safekeeping of the remaining tokens, MovEx has transferred them to a custodian wallet, from which they will be distributed in accordance with the previously established timetable. It’s worth noting that the Sui Foundation has taken a similar tack with all other tokens, entrusting them to reliable third parties in order to safeguard the funds that are locked up.
After hearing disturbing rumours that unlocked tokens were being sold on the black market, the company has decided to end its relationship with MovEx. The rapid reaction of the foundation to these claims exemplifies their dedication to protecting the credibility of the DeepBook platform.
The Sui Foundation and MovEx will both feel the effects of this breach. While MovEx suffers a major loss in its reputation and future possibilities, the Foundation will be on the lookout for new contributors to take up the mantle that MovEx formerly carried.
The Sui Foundation’s deeds are a potent reminder that, as the cryptocurrency industry develops, it is critical that all parties involved in any enterprise stick to their contractual commitments and that all relevant information be made public. How this scenario develops in the next several days will be widely watched by the crypto world.
