Movement Labs terminates Rushi Manche following market manipulation allegations, impacting MOVE token and market. Investigation continues.
- 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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