- Rushi Manche removed from Movement Labs due to market-making allegations.
- Market-maker sold 66 million MOVE tokens impacting prices.
- Coinbase and Binance took action against related activities.
Movement Labs Terminates Co-Founder Over Token Manipulation
Movement Labs terminated co-founder Rushi Manche amid a market-making scandal involving MOVE token manipulation. Manche was initially suspended on May 2, 2025, as a third-party review by Groom Lake was underway. His termination led to a broader leadership restructuring within the company. The review focuses on Manche’s arrangement with Rentech, involving market maker Web3Port. Movement Labs confirmed the suspension , stating, “This decision was made in light of ongoing events and as the third-party review is still being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker.”
66 Million MOVE Tokens Sold in Scandal
The scandal resulted in a 66 million MOVE token sell-off by Web3Port, creating $38 million USDT price pressure. Binance expelled the market maker after profits of the same amount. Coinbase suspended the MOVE token due to the related controversy , affecting investor confidence.
78% of New Tokens Experience Instability
Movement Labs’ situation is comparable to previous instances of token dumps causing instability. Reports indicate up to 78% of new token listings since April 2024 have experienced similar challenges. Industry analysts suggest increased oversight on market makers could help prevent such occurrences in the future.
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