Market Maker Scandal Leads to Suspension of Co-Founder at Movement Labs: Comprehensive Information
**"What Went Down at Movement Labs"
Movement Labs co-founder Rushi Manche finds himself in hot water after a shady market-making deal led to a $38 million token dump, a Binance and Coinbase trading ban, and widespread investor backlash.
The debacle began with a questionable agreement between Movement Foundation and a third-party entity named Rentech, reportedly masterminded by Singapore-based financier Galen Law-Kun. According to documents leaked to CoinDesk, Rentech was tasked with providing liquidity for MOVE through Chinese market maker Web3Port.
Suspicious terms in the contract allowed Web3Port to cash out tokens if MOVE's valuation hit $5 billion, splitting profits equally with the Movement Foundation. Analysts argue this set up a pump-and-dump dynamic.
When MOVE launched on Binance in December 2024, wallets tied to Web3Port started offloading tokens, causing a massive sell-off. As a result, Binance barred the involved market maker for violating contract terms. They also alerted the Movement team about the dubious activities, prompting the foundation to cut ties with Web3Port.
On the wake of these revelations, Coinbase suspended MOVE trading on May 15 due to the token failing to meet listing standards. The exchange further restricted trading by moving order books to limit-only mode.
Movement Labs' general counsel YK Pek had initially dismissed the deal as "the worst I've ever seen." ButManche, who was suspected of pushing the deal through, was later suspended. He claims he was deceived by someone within the foundation, with whispers pointing towards unofficial advisor Sam Thapaliya as the potential puppet master.
The Zebec founder denies any formal role in the deal but admits to being copied on important emails and even being present during the chaotic token launch. The suspension of Manche caused MOVE's price to plummet by over 27%, plummeting from an intraday high of $0.2543 to an all-time low of $0.1848.
Use this link to get a whopping $600 with Binance's exclusive welcome offer on sign-up . Only for our readers!
Bonus Position available on Bybit: Sign up here to claim a $500 free position on any coin!
[1] Binance ban, Coinbase suspension a reputational disaster for all parties involved, CoinDesk[2] Analysis suggests deal terms incentivized pump-and-dump practices, various analysts[3] Token's price plummets, following a massive sell-off, Binance[4] Co-founder Manche suspended amidst ongoing investigation into organizational governance, Movement Labs official statement.**
- The co-founder of Movement Labs, Rushi Manche, faces an investigation after a shady market-making deal led to a $38 million token dump.
- The deal between Movement Foundation and Rentech, allegedly orchestrated by Singapore-based financier Galen Law-Kun, involved Web3Port, a third-party market maker, to provide liquidity for MOVE tokens.
- Suspicious terms in the contract permitted Web3Port to cash out tokens if MOVE's valuation reached $5 billion, favoring a pump-and-dump dynamic, according to analysts.
- Following this manipulation, wallets linked to Web3Port offloaded tokens during MOVE's launch on Binance, causing a sell-off that resulted in Binance barring the market maker for violating contract terms.
- Coinbase suspended MOVE trading due to the token's failure to meet listing standards, and subsequently restricted trading by moving order books to limit-only mode.
- Movement Labs' general counsel YK Pek initially dismissed the deal, but Manche's suspension, suspected of pushing the deal through, led to a significant price drop in MOVE and raised concerns about organizational governance.
