May 2, 2025 — Movement Labs has suspended its co-founder, Rushi Manche, following rising controversy surrounding a market-making deal linked to recent turmoil in the MOVE token market.
The announcement was made via an official X post, where Movement Labs stated the suspension was made “in light of ongoing events.” This decision comes shortly after Coinbase halted trading of the MOVE token, citing the asset's failure to meet its listing standards.
At the center of the controversy is a deal Manche arranged with Rentech, which introduced Web3Port as a market maker for MOVE. Web3Port reportedly acquired 66 million MOVE tokens — approximately 5% of the total supply — and subsequently sold them, placing $38 million worth of downward pressure on the token’s price in December 2024.
The Movement Network Foundation has initiated a third-party investigation into the matter. The inquiry is being conducted by Groom Lake, a private intelligence firm, though they have not responded to media inquiries at this time.
Market Makers Under the Microscope
The controversy highlights growing concerns over the role of market makers in the crypto space. While effective market makers can provide liquidity and open doors to top-tier exchange listings, misaligned incentives can spell disaster for fledgling projects.
A report from summer 2024 revealed that nearly 78% of new token listings since April 2024 were mismanaged, often involving questionable market-making tactics.
Broader Industry Issues
The MOVE situation is not isolated. Multiple high-profile legal cases have emerged involving market manipulation:
Celsius Network creditors accused Wintermute of wash trading its token to falsely inflate trading volumes.
Fracture Labs sued Jump Crypto for allegedly executing a pump-and-dump scheme with its in-game currency, DIO.
A Wall Street Journal investigation in late 2024 claimed DWF Labs, a major Binance trading client, engaged in $300 million worth of market manipulation. Both Binance and DWF Labs denied these allegations.
CLS Global was fined by a Massachusetts court for fraudulent volume manipulation in April 2025.In February, the founder of market maker Gotbit was extradited to the U.S. from Portugal on charges of market manipulation and wire fraud conspiracy.
A Call for Transparency
As scrutiny increases, the crypto industry faces mounting pressure to address transparency and ethical practices among market makers. The ongoing MOVE investigation may become a pivotal case in shaping future regulatory and operational standards in the decentralized financial space.
