The public blockchain project Movement, supported by Trump’s team World Liberty Financial, was originally highly regarded but unexpectedly became embroiled in a scandal involving token dumping, book profit manipulation, and dual contracts. According to internal documents and contracts obtained by CoinDesk, this case involves a series of complex stakeholders and opaque operations, even leading to a crash in $MOVE token value the day after its listing and being banned by Binance exchange.

Behind the Secret Contract: Who Allowed Rentech to Control the $MOVE Supply?

According to internal investigation documents, Movement signed an agreement authorizing an intermediary named Rentech to take about 5% of the total supply of $MOVE tokens, allowing Rentech to dump up to 66 million tokens the day after the $MOVE token was listed, causing a rapid price crash. What is even more surprising is that Movement was initially told that Rentech was a subsidiary of market maker Web3Port, but this was not the case. This misunderstanding has led Movement's senior management to now suspect they unknowingly signed an agreement with price manipulation incentives.

Market Maker Abuse: Price Stability Turns into Arbitrage, Movement

Market Makers originally intended to provide liquidity and stability for new tokens, but in this incident, the role of market makers was used to quietly manipulate the market and dump large amounts of tokens. According to comments from crypto entrepreneur Zaki Manian, there is even a clause in the contract encouraging the $MOVE token's FDV (Fully Diluted Value) to be pushed up to $5 billion (currently $2.4 billion), then profiting through dumping and sharing the profits with the project team. He bluntly stated, 'Just being able to discuss such clauses is insane.'

Contract Multiple Identity Confusion: Rentech plays both roles simultaneously

A series of contracts obtained by CoinDesk show that Rentech acts as both an agent representing Movement and is labeled as a subsidiary of Web3Port in the contract. This design created space for Rentech to negotiate with both sides, essentially signing contracts with itself. Such a structure is extremely rare in the crypto industry and allowed Rentech to quickly liquidate $38 million worth of $MOVE tokens.

Binance Disabled Accounts, Movement's Repurchase Attempt to Calm the Storm

$MOVE token was sold off the day after listing, causing a crash, which led to market suspicions. Binance promptly banned the accounts of related market makers, citing 'improper behavior.' To regain market confidence, Movement launched a token repurchase plan, claiming it is investigating whether anyone sold tokens prematurely without authorization.

Internal Interconnections in Movement: Who is the Behind-the-Scenes Operator?

Movement was founded by two 22-year-old dropouts from Vanderbilt University, Rushi Manche and Cooper Scanlon, who quickly rose to fame with the backing of Trump-supported World Liberty Financial. However, this scandal has brought the relationships between the founders and senior management to the surface. According to multiple informed sources interviewed by CoinDesk, the agreement with Rentech was first proposed by co-founder Rushi Manche and promoted internally. Non-official advisor Sam Thapaliya, who is a partner of Rentech founder Galen Law-Kun, is suspected of being one of the behind-the-scenes orchestrators.

Did the legal advisors fulfill their duties? Who oversaw the contract?

Movement Foundation's legal advisor YK Pek referred to the original contract internally as 'possibly the worst agreement I have ever seen,' warning that it handed market dominance to an unverified entity. However, the subsequent revised version of the contract was completed under his leadership, removing some high-risk clauses but retaining key provisions allowing for a 5% supply to be monetized. DNS records show that on the day the contract was signed, the domain related to Rentech was just registered, adding more suspicion.

The Truth Behind Rentech: Financial Intermediary or Shadow Organization?

Rentech was founded by Law-Kun, claiming to be a subsidiary of Singapore financial company Autonomy, aimed at assisting Asian family offices in investing in crypto projects. However, CoinDesk found no concrete evidence proving that the Movement Foundation or its legal advisors were directly involved in its establishment. Pek clarified that he has never served as the general legal advisor for Law-Kun or his company, but had briefly reviewed their documents and provided corporate secretarial services.

Movement Clears Itself as a Victim, Initiates Third-Party Review

Movement co-founder Cooper Scanlon stated in internal Slack messages that the company has hired an external auditing firm, Groom Lake, to conduct a comprehensive investigation, emphasizing that 'Movement is a victim in this incident.' However, trust from the market and community may already be damaged, and the future rebuilding path for the $MOVE token will undoubtedly be challenging.

Movement Responds: Investigation Underway

Movement stated after the CoinDesk report: "Movement Labs is aware of CoinDesk's report. Movement Labs and Movement Network Foundation have commissioned a detailed third-party market maker anomaly behavior review. The review by Groom Lake is underway. Once we have all the details, we will share the findings immediately." "Based on the review results, we will implement significant governance changes to ensure such incidents do not occur again within Movement."

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'$MOVE Listing Crash! Foreign Media Exposes Movement Market Maker Cutting Leeks, How Does the Official Respond?' This article was first published in 'Crypto City'