Crisis at Movement Labs: 66M MOVE Dump Triggers Major Fallout!

Yigit Taha OZTURK — Fri, 02 May 2025 08:00:11 +0000

Movement Labs, one of the most promising Ethereum layer-2 projects, has suspended co-founder Rushi Manche amid mounting backlash over a controversial deal involving 66 million MOVE tokens dumped into the market.

Governance Under Fire

Allegedly, Movement Labs struck a market-making deal with Rentech, posing as an affiliate of Chinese firm Web3Port. Internal documents reveal Rentech represented both Web3Port and the Foundation itself, sparking conflict-of-interest concerns. The firm sold all its 66M MOVE tokens within 24 hours of launch, sending shockwaves through the crypto community.

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Reports claim Manche forwarded early drafts of the deal and maintained involvement with both Movement Labs and the nonprofit Foundation—despite their intended separation. Legal advisers reportedly called the deal “one of the worst” they’d ever reviewed, yet it proceeded, leading to massive market disruption.

Major Exchange Reactions

Binance responded by offboarding the market maker and freezing $38 million in proceeds, citing misconduct. Later, Coinbase announced it would suspend MOVE trading on May 15, further compounding the project’s turmoil.

Following these announcements, MOVE dropped 14% to $0.20, with a daily loss of 21%, according to Coingecko. A third-party governance audit by Groom Lake is underway to determine Manche’s role in the deal.

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The post Crisis at Movement Labs: 66M MOVE Dump Triggers Major Fallout! appeared first on Coin Engineer.

Market Maker Misconduct Triggers Investigation at Movement Labs

Yigit Taha OZTURK — Wed, 16 Apr 2025 07:00:25 +0000

Following recent controversy involving its MOVE token, Movement Labs and the Movement Network Foundation have launched an internal and third-party investigation into market maker activity.

Third-Party Review Underway

According to internal Slack messages obtained by Blockworks, Movement co-founder Cooper Scanlon said the team is still “exploring various routes” of the investigation, with nothing definitive yet. A spokesperson confirmed that an external firm is involved but didn’t reveal its identity.

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Movement said the review is “a standard best practice to ensure full transparency and accountability.”

Co-Founder Manche Takes Temporary Leave

Multiple sources confirmed that co-founder Rushi Manche has taken a temporary leave of absence. He missed the company’s recent San Francisco onsite and was reportedly absent from Slack for a few days.

However, Manche told Blockworks he’s still active and conducting ecosystem meetings, claiming his Slack access was restored by Monday evening.

Binance Offboards Market Maker Over MOVE Token

This situation escalates just weeks after Binance removed a market maker over “misconduct” tied to the MOVE token. Although the exchange didn’t reveal the party’s name, crypto sleuth ZachXBT pointed toward Web3Port. Blockworks’ analysis shows Web3Port had recently engaged with Movement Labs’ content online.

The ongoing investigation marks a pivotal moment for Movement Labs. In a volatile industry like crypto, restoring trust through third-party reviews and transparent communication is crucial. Investors and community members should closely monitor developments as the investigation progresses.

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