The Sui-native hardware wallet had already entered manufacturing and was preparing its first shipment when the team announced it is closing down. The Sui Foundation decided that backing a hardware wallet project is too risky right now, after a wave of attacks on hardware wallets across the industry.

Refunds will be paid in USDC. On-chain pre-orders, about 80% of all orders, will be airdropped automatically within the next week to the wallets holding the soulbound pre-order NFTs. Credit card buyers will receive an email asking for a Sui wallet address, followed by a second airdrop.

Around 80% of Suiball pre-orders were placed on-chain and will be refunded with no claim required.

The shutdown comes less than a month after Suiball delayed deliveries in October for additional independent security audits following talks with Mysten Labs. The team says it will never ask for seed phrases, private keys or payments, and will delete all customer delivery data once refunds are complete.