The Sui Foundation has announced the termination of its relationship with decentralized exchange MovEx after the latter breached their contract, resulting in additional SUI tokens being circulated in the open market. SUI tokens are used to transact and maintain the Sui Network, a low-cost blockchain founded by ex-Meta Platforms (META) employees. MovEx received 2.5 million SUI, worth $1.6 million at current prices, from the Sui Foundation as payment for its work on exchange product DeepBook, subject to a contractual lockup. However, MovEx violated the lockup by initiating three transactions of 625,000 SUI to three unique wallets, without notifying the Sui Foundation.
MovEx did not make Sui Foundation aware of the three transactions in violation of the contractual lockup, and the Sui Foundation did not consent to them, the Foundation said. By July 3, MovEx had moved the entire allotment of 2.5M tokens to a wallet custodied at a qualified custodian, who will release them according to the contractual lockup schedule. No additional SUI tokens will be distributed to MovEx nor will MovEx remain one of the main contributors to DeepBook, Sui Foundation further stated. MovEx did not push back or deny Sui Foundation’s actions, stating it would continue to operate.