Delta discloses OTC transaction dispute: partner has sold 16.5 million DELTA, team admits no lock-up restrictions were set

Delta disclosed that a counterparty sold 16.5 million DELTA tokens, or 1.65% of total supply, out of 26 million DELTA (2.6% of supply) allocated via OTC on August 24 in exchange for operating capital and marketing support, with 9.5 million DELTA remaining in two addresses. The team said it did not sell tokens directly but admitted it imposed no lock-up, vesting or selling restrictions on the counterparty and failed to communicate in advance about the sales. On-chain records show three receiving addresses transferred a combined 101,500 USDG to a wallet linked to Frogmanhaha on November 7. Delta said it tried to resolve the dispute with the counterparty but no agreement was reached, and it will apply the lesson while continuing development. The episode highlights token-distribution and lock-up risk for early-stage projects, and the market will watch whether the remaining 9.5 million DELTA stays put and how the team structures future allocations.