Stock in Movement price decreases by 22% following suspension of co-founder Rushi Manche from Movement Labs.
A Storm Brews over MOVE Tokens: Movement Labs Takes a Hit as Critical Developments Unfold
The winds of change are whipping through Movement Labs, leaving a trail of trouble for token holders. The recent Coinbase delisting announcement has served as a catalyst for further losses.
Issues with market maker activities have been stirring turbulence in the Movement Labs ecosystem for over a month.
Rushi Manche, Co-founder of Movement Labs, Suspended
Following Coinbase's announcement to delist the MOVE token, Movement Labs has suspended Rushi Manche, one of its co-founders. This decision paves the way for an in-depth review of market maker actions[1][2].
In a statement, Movement Labs confirmed Manche's suspension, citing ongoing events and the ongoing third-party review by Groom Lake regarding organizational governance and recent market-maker incidents[1].
The latest concern revolves around a market-maker scandal involving Web3Port, which allegedly recently dumped 66 million MOVE tokens. This move caused a 20% crash in the MOVE token price[3].
Binance had previously disciplined a market maker for the Movement project due to violations of trading regulations, freezing its profits[2].
Recently, Movement Labs initiated a third-party investigation into potential market-maker misconduct involving the MOVE token[5]. However, this probe came during Manche's temporary leave of absence. Manche had previously disputed reports of his departure from the project[6].
On X, Manche posted on Twitter that he was still with Movement, having missed the company offsite because he was in Asia for Web3Festival. He also participated in weekly ecosystem calls, according to his statement on Slack. However, Manche's Slack profile, which sources claimed was temporarily deactivated, seems to have been reinstated recently[6][7].
This recent suspension indicates the severity of the situation, possibly pointing to new findings in the third-party investigation. Questions about liquidity partner vetting and the future of the Movement ecosystem linger[7].
Swirling Allegations and Questions
"What about Sam Thapaliya?" asked Mike Dudas, a co-founder of The Block. Thapaliya, founder of Zebec Protocol, has close ties with Movement Labs founders Rushi Manche and Cooper Scanlon[5]. He advised Movement Labs, particularly around the launch of their MOVE token, including helping curate the airdrop whitelist[8].
Thapaliya's role has come under scrutiny due to a contentious market-making agreement with Rentech, which led to a $38 million token sell-off scandal in December 2024. Speculation suggests that Thapaliya might have been involved in key emails regarding the deal[8].
There is also speculation about Thapaliya's influence as a "shadow third co-founder," shaping last-minute decisions. However, Thapaliya has denied having any formal role, equity, tokens, or decision-making power in Movement Labs or the Movement Foundation[8].
Promises of Clarity
Though he has yet to comment on the latest developments regarding his suspension, Manche has promised to provide clarity[9]. In a detailed post, Manche claimed that "opportunistic administrators" acting as shadow decision-makers within the foundation had misled the team[9].
As the MOVE Network's credibility continues to be questioned, the MOVE token is down by almost 22% in the last 24 hours. As of this writing, it has exacerbated the post-Coinbase delisting announcement crash to trade for $0.20.
References:[1] Coinbase Delists the MOVE Token[2] Binance Fines a Market Maker for Movement Project Trading Regulation Violations[3] MOVE Token Dump: Market Maker Web3Port Allegedly Liquidates 66 Million Tokens, Crashing Prices[4] Coinbase Removes MOVE Token From Its Listing[5] Move Labs suspends its COO and launches an investigation into their most publicly scrutinized executive[6] Move Labs Co-Founder Rushi Manche Disputes Reports of His Departure[7] MOVE Token Loses Nearly 20% Following Coinbase Delisting Announcement[8] Rushi Manche, Sam Thapaliya, and Movement Labs Crypto Controversy[9] Move Labs’ Co-Founder Rushi Manche Speaks Out After His Suspension
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- The suspension of Rushi Manche, Co-founder of Movement Labs, follows Coinbase's announcement to delist the MOVE token, prompting an in-depth review of market maker actions.
- Groom Lake is conducting an ongoing third-party review of organizational governance and recent market-maker incidents at Movement Labs.
- Web3Port, a market maker, allegedly dumped 66 million MOVE tokens, causing a 20% crash in the MOVE token price.
- Binance had previously disciplined a market maker for the Movement project due to violations of trading regulations, freezing its profits.
- Movement Labs initiated a third-party investigation into potential market-maker misconduct involving the MOVE token, initially during Manche's temporary leave of absence.
- Questions about liquidity partner vetting and the future of the Movement ecosystem linger amidst the suspension of Manche and the third-party investigation.
- Mike Dudas, a co-founder of The Block, has raised concerns about Sam Thapaliya, who has close ties with Movement Labs founders and advice regarding the launch of the MOVE token.
- Speculation suggests that Thapaliya might have been involved in key emails regarding a contentious market-making agreement with Rentech that led to a $38 million token sell-off scandal in December 2024.
- Rushi Manche, in a detailed post, claimed that "opportunistic administrators" acting as shadow decision-makers within the foundation had misled the team, promising to provide clarity on his suspension.
