Movement Labs terminates co-founder after $38M token price drop
Movement Labs announced the termination of co-founder Rushi Manche following controversy over a market maker deal linked to significant price declines in its MOVE (CRYPTO:MOVE) token.
The announcement came on May 7 via Movement Labs’ official X account, stating that Manche had been terminated and that the project would continue under new leadership with upcoming governance changes.
Earlier in the month, Movement Labs had suspended Manche amid ongoing concerns related to a market maker agreement he brokered with Rentech and Web3Port.
This deal resulted in Web3Port selling 66 million MOVE tokens, approximately 5% of the total supply, which caused an estimated $38 million drop in token value in December 2024.
Coinbase recently suspended the MOVE token, citing failure to meet its listing standards, adding to the project’s challenges.
In response, Movement Labs launched a new entity called Move Industries, appointing former Movement Labs employees Torab Torabi as CEO and Will Gaines as chief marketing officer.
The firm emphasized plans for improved governance, including town halls for transparency and enhanced vetting procedures.
A third-party review of the market maker deal is underway, conducted by private intelligence firm Groom Lake.
“I will soon do what he did to a large swath of scammers in this industry. I will break them,” stated Groom Lake’s founder, known as FDR, while referencing Byzantine Emperor Basil II and declining to share details without consent.
Market makers play a critical role in token liquidity but have been linked to controversies involving market manipulation.
Recent reports highlight cases of wash trading and pump-and-dump schemes involving market makers such as Wintermute, Jump Crypto, and DWF Labs.
Regulators have increased scrutiny, with a Massachusetts court fining CLS Global last month for fraudulent trading volume manipulation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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