Movement Labs Suspends Co-Founder Amid Market Maker Scandal: Full Details
By: cryptosheadlines|2025/05/02 20:15:01
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Movement Labs has suspended co-founder Rushi Manche following revelations of a dubious market-making deal that led to a $38 million token dump, a Binance and Coinbase trading ban, and widespread investor backlash.What was at first presented as a standard liquidity agreement has unraveled into a tale of alleged deception, opaque middlemen, and internal breakdowns that now threaten the credibility of Movement’s native MOVE token.The Deal That Went WrongThe trouble stems from a deal between Movement Foundation and a third-party entity named Rentech, reportedly fronted by Singapore-based financier Galen Law-Kun. According to leaked contracts and internal messages obtained by CoinDesk, Rentech was supposed to facilitate liquidity provisioning for MOVE through Chinese market maker Web3Port.It led to a decision to transfer 66 million MOVE tokens to the little-known firm, amounting to about 5% of the circulating supply. This was done under terms legal experts have since called “unusual” and “reckless.”For instance, one of the provisions allegedly allowed Web3Port to liquidate tokens if MOVE’s valuation hit $5 billion, splitting profits 50/50 with the Movement Foundation. According to analysts, this created a pervasive incentive to pump and dump.Predictably, on MOVE’s launch on Binance on December 9, 2024, wallets linked to Web3Port reportedly began unloading their holdings, triggering a $38 million sell-off. Consequently, the token’s price plummeted, causing Binance to ban the implicated market maker for alleged breach of contract.The exchange also informed the Movement team of the situation, with the foundation claiming it had been unaware of Web3Port’s activities and immediately cutting ties with the firm.Following the CoinDesk scoop, Coinbase announced it would suspend MOVE trading on May 15, claiming the token had failed to meet its listing standards. The exchange has moved order books to limit-only mode, further tightening the noose on what has become a reputational disaster for all parties involved.Manche Under InvestigationYK Pek, the foundation’s general counsel, had initially slammed the proposal between Movement and Rentech, calling it “the worst deal I have ever seen.” Still, a revised version was signed, raising questions about who pushed it through.Co-founder Manche is said to have circulated the Rentech deal internally and has since been placed on administrative leave pending a third-party investigation led by Groom Lake. Movement Labs confirmed his suspension in a brief statement on X:“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,” read the post.However, the 22-year-old claims he was duped by someone within the foundation, with insiders reportedly pointing to unofficial advisor Sam Thapaliya as a major influence behind the scenes.The Zebec founder, who denies having any formal involvement in the deal, was not only copied on important emails but was also allegedly present at Movement’s San Francisco office during the chaotic token launch.Following Manche’s suspension, MOVE’s price dropped by more than 27%, going from an intraday high of $0.2543 to a new all-time low of $0.1848.SPECIAL OFFER (Sponsored)Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!Source link
You may also like

To the Builders who are still persevering in the crypto industry
Kydo deeply reflects on the dilemmas of the cryptocurrency industry: bidding farewell to the false prosperity of "selling infrastructure to developers" and proposing a new paradigm of using programmable capital to provide growth fuel for AI Agent companies.

Oil Price Cools Off, Crypto Bounces Back
Why Oil and Bitcoin Prices Always Move in Opposite Directions

a16z Releases Top 100 AI Applications List, Models Are Moving Out of the Browser and App
With the rise of video creation, Agent tools, and AI browsers, AI is evolving from a chat product into a new platform and operating environment.

If you only follow the news, you may have misconstrued this Iran conflict
With a Narrative-Driven Agenda, Western Media Falsifies War Coverage

ERC-8183: Write a Rule for a $3M On-Chain Agent Business
Before running in the Wild West of three million dollars, today, the rules have been written

AI Mistakenly 'Tips' $260,000, Makes It All Back in 24 Hours
AI Awakening seems to be really happening: they have already started to learn how to earn money on their own, and their money-earning ability may even surpass that of humans.

Arthur Hayes: Why is HYPE a 5x Moonshot?
Arthur Hayes' price target for HYPE in August 2026 is $150.

OpenClaw Money-Saving Strategy: Saving Two Thousand a Month - What Am I Doing Right?
Don't Keep Replaying Old Stuff

a16z: Making a $2 Billion Bet on the Next Dawn of Web3
What did the Inarticulate Geniuses See This Time?

Trade to Earn Series IV: WEEX Launches Up to 40% Real-Time Futures Fee Rebates
Trade futures on WEEX and earn up to 40% real-time fee rebates. Trade to Earn Series IV lets you accumulate WXT rewards while reducing trading costs.
WEEX AI Hackathon Champions Crowned, Revealing Future of AI Trading
The first-ever WEEX AI Hackathon has concluded, with 10 winners emerging from over 200 global teams. Beyond its $1.8 million prize pool, the event marked a milestone—proving that the future of AI trading belongs to accessible, AI-powered innovation.

View: No Hype, No FUD, I Rate OpenClaw at 65 Points
If you approach lobster with a "get rich quick" or "lead Web 4.0" mindset, you will surely be disappointed.

Single-day Oil Price Plunge Exceeds 30%, Copilot Cowork Feature Launched, What Is the English-Speaking Community Talking About Today?
What Have Foreigners Been Most Interested in the Last 24 Hours?

The Agent Spend Safely thing has already taken off
Every shift in platform paradigm brings forth a new wave of merchants that existing payment systems cannot cater to.

After the rise in the stablecoin's status, long-time partners Circle and Stripe vie for dominance
A Stablecoin On-Chain "Middle Path Encounter".

WEEX Trade to Earn: Turn Futures Trading into Instant WXT Rewards
Join WEEX Trade to Earn and earn instant WXT rebates on every futures trade. Boost rewards with referrals and tasks. Trade more, earn more on WEEX exchange.

Trading Everything, Never Closing: RWA Perpetual Contracts (Part 1)
RWA perpetual contracts are trying to disrupt the traditional financial markets of costly zero-day options (0DTE) and opaque contracts for difference (CFD) with transparent on-chain "linear leverage."

Morning News | Nscale completes $2 billion Series C funding; 20 millionth Bitcoin has been mined; Polymarket will launch S&P 500 binary options products
Overview of Important Market Events on March 9
To the Builders who are still persevering in the crypto industry
Kydo deeply reflects on the dilemmas of the cryptocurrency industry: bidding farewell to the false prosperity of "selling infrastructure to developers" and proposing a new paradigm of using programmable capital to provide growth fuel for AI Agent companies.
Oil Price Cools Off, Crypto Bounces Back
Why Oil and Bitcoin Prices Always Move in Opposite Directions
a16z Releases Top 100 AI Applications List, Models Are Moving Out of the Browser and App
With the rise of video creation, Agent tools, and AI browsers, AI is evolving from a chat product into a new platform and operating environment.
If you only follow the news, you may have misconstrued this Iran conflict
With a Narrative-Driven Agenda, Western Media Falsifies War Coverage
ERC-8183: Write a Rule for a $3M On-Chain Agent Business
Before running in the Wild West of three million dollars, today, the rules have been written
AI Mistakenly 'Tips' $260,000, Makes It All Back in 24 Hours
AI Awakening seems to be really happening: they have already started to learn how to earn money on their own, and their money-earning ability may even surpass that of humans.