Co-founder of Movement Labs suspended; 27% plunge in MOVE value as Coinbase decides to take MOVE token off platform listings
Rushi Manche and the MOVE Token Fiasco at Movement Labs
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Movement Labs, a prominent blockchain player, has found itself in hot water due to allegations against its co-founder, Rushi Manche. The rumors point to his involvement in the questionable dumping of MOVE tokens via a third party.
The Movement Labs' Revelation
In a transparent move on May 2nd, Movement Labs disclosed,
"We're suspending Rushi Manche from our ranks. This decision comes after the ongoing events and the third-party review being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker."
The Shady Dealings
According to an initial report by CoinDesk, Web3Port Labs acquired a staggering 66 million MOVE tokens, accounting for 5% of the total supply. Post-listing, these tokens were dumped by Web3Port Labs, causing the price of MOVE to plummet below $0.30.
The Coinbase Decision
Rumors swirled that a firm named Rentech signed deals with both Movement Labs and Web3Port Labs, facilitating the transfer of 5% of the MOVE token circulation to Web3Port Labs. Allegedly, Manche was an advocate for this deal. It is said that Binance banned the market makers' accounts that sold the token.
However, Manche swiftly denied any involvement in the scandal, shifting the blame to the Foundation team, as he stated on April 30th,
"Any decisions made by the market makers were approved and supported by the entire Foundation team. There were bad apples involved that corrupted the process, and the team is in the process of investigating."
The Aftermath
Coinbase announced that it would suspend trading of the MOVE token on May 15th, causing a 27% plunge during the trading session on May 1st. Overall, the token has plummeted 86% from its record high of $1.4 to below $0.20.
Although the dumping seemed to subside at key trendline support, whether the token can hold above it remains uncertain.
MOVE is an Ethereum layer-2 blockchain supported by World Liberty Financials (WLFI). As per Arkham data, Trump's WLFI still holds 7.5 million MOVE tokens (worth $1.3 million) despite the controversy.
This scandal began unfolding in December 2024 when the MOVE token was launched and transferred to Web3Port Labs through an intermediary (Rentech). Shortly after listing, Web3Port Labs allegedly liquidated the tokens, resulting in a $38M USDT profit and a market crash. Binance responded by banning the market maker and freezing proceeds.
The investigation by Groom Lake is continuing, with further repercussions likely as exchanges and regulators respond to the situation. Whether Manche and the Movement Labs team will emerge unscathed from this controversy remains to be seen.
- Movement Labs, a well-known player in the blockchain industry, has been embroiled in a controversy surrounding co-founder Rushi Manche and the questionable dumping of MOVE tokens.
- Movement Labs publicly announced the suspension of Rushi Manche due to the on-going events and a third-party review focusing on organizational governance and recent incidents involving a market maker.
- According to CoinDesk, Web3Port Labs acquired 66 million MOVE tokens, amounting to 5% of the total supply, which were later dumped, causing the token's price to significantly drop.
- It was alleged that Rentech, a third party, facilitated the transfer of 5% of the MOVE token circulation from Movement Labs to Web3Port Labs, a deal which Manche was an advocate for.
- Manche denied any involvement in the scandal, claiming that decisions made by the market makers were approved and supported by the entire Foundation team.
- Coinbase decided to suspend trading of the MOVE token on May 15th, contributing to a 27% plunge during a trading session on May 1st, and overall, the token has fallen 86% from its record high.
- Arkham data reveals that despite the controversy, Trump's World Liberty Financials (WLFI) still holds 7.5 million MOVE tokens (worth $1.3 million). The investigation by Groom Lake is ongoing, with potential consequences for Manche and the Movement Labs team as industry regulators respond to the situation.
