Movement Labs, the team behind the Movement blockchain network, has severed all ties with co-founder Rushi Manche amid mounting concerns over opaque token arrangements involving the project’s MOVE token.
The announcement was made early Tuesday on the company’s official X account, stating unequivocally that Manche’s employment and affiliations had been terminated “effective immediately.”
The firm has not yet named a successor or shared details regarding how it plans to restructure governance in the wake of the leadership shake-up.
Report Uncovers Secret MOVE Token Deals Tied to Movement Labs
The move comes in response to a recent investigative report, which exposed a series of undisclosed deals between Movement-affiliated entities and third-party market makers during the MOVE token’s launch phase.
The report detailed the existence of so-called “shadow advisors,” covert payment arrangements, and hidden allocations of MOVE tokens—all of which pointed back to Manche.
Manche had been suspended on May 2, shortly after Coinbase delisted the MOVE token.
That delisting was prompted by increasing community scrutiny over transparency and operational practices at Movement Labs.
The market reaction has been swift. MOVE tokens fell 8.5% in the 24 hours following Manche’s removal and are down 35% over the past week, reflecting broader investor unease.
Market makers often play a crucial role in the early success of digital assets by providing liquidity and facilitating access to major exchanges.
However, when misused, these partnerships can spell disaster. A mid-April analysis warned that mishandled market-making arrangements could undermine confidence and derail projects entirely.
Rising Concerns Over Market Manipulation
Notably, concerns about manipulation in crypto markets have grown in recent months.
Data from summer 2024 revealed that as many as 78% of new token launches since April had suffered from problematic or poorly disclosed market-making deals.
Several high-profile incidents have fueled skepticism. Creditors of defunct crypto lender Celsius Network alleged that Wintermute, a leading market maker, engaged in wash trading of the CEL token.
Likewise, Fracture Labs filed a lawsuit in late 2024 accusing Jump Crypto of manipulating the value of its in-game token, DIO.
Meanwhile, DWF Labs faced accusations of inflating trading volumes through undisclosed arrangements—allegations both it and Binance have denied.
In response to growing concerns, U.S. regulators have ramped up enforcement, even launching a sting operation with a fake token to catch bad actors.
In one notable case, a Massachusetts court recently fined CLS Global for fraudulent trading practices.
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