movement Labs Suspends Co-Founder Amid Market Maker Scandal
On May 2, Movement Labs announced the suspension of co-founder Rushi Manche. The decision follows an ongoing investigation by Groom Lake into a market maker scandal. Hours earlier, Coinbase declared it would suspend all Movement (MOVE) trading pairs from May 15, citing listing standard failures.
The controversy began with a token dump in December. A market maker allegedly sold 66 million MOVE tokens,pocketing an estimated 38 million Tether (USDT). Binance reported the issue in March, freezing the funds and alerting Movement Labs. Rentech, the firm behind the dump, was wrongly linked to Web3Port but appears to be an self-reliant entity.
Leaked contracts suggest Rentech controlled over 5% of MOVE’s supply, aiming for a $5 billion valuation before a sell-off. Movement Foundation ended ties with the market maker and pledged a $38 million USDT buyback.The investigation will determine if Movement executives were involved or misled.
MOVE is currently trading at $0.19, down over 20% in 24 hours.The price action shows a downtrend since late March, with the token struggling to hold above $0.18. The relative strength index near 32 indicates ongoing bearish momentum. The project’s future depends on transparency and the investigation’s outcome.
