The whirlwind of Movement Labs is intensifying, causing significant losses for MOVE token holders. The new developments following the delisting announcement on Coinbase have worsened these losses.
Issues related to the actions of market makers have worsened the sentiment in the Movement Labs ecosystem, which has been ongoing for over a month.
Co-founder of Movement Labs Rushi Manche has been suspended
After Coinbase announced plans to delist the MOVE token, Movement Labs suspended Rushi Manche, their co-founder, paving the way for investigations into market makers.
"We confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of current events, as a third party, Groom Lake, is still conducting a review of organizational governance and recent incidents related to the market maker," stated Movement.
The scandal involves the market maker Web3Port, which reportedly recently dumped 66 million MOVE tokens. The incident caused the MOVE token price to drop by 20%.
As this unfolded, the cryptocurrency exchange Binance penalized the project's market maker for violating trading regulations by freezing its profits.
Recently, Movement Labs launched a third-party investigation into alleged wrongdoing by the market maker related to the MOVE token. It is important to note that they initiated this investigation during Manche's temporary absence. However, Manche denied reports of his departure from the project.
"I am still in Movement. I missed the corporate retreat because I was in Asia at the Web3 Festival," Manche said on X.
Manche also responded to speculation about his status on Slack, stating that he remains active and participates in weekly ecosystem calls. His Slack profile, which sources say was temporarily deactivated, has recently reappeared.
Thus, the latest developments related to his suspension indicate the depth of the issue, likely against the backdrop of new findings in the investigation by a third party.
The issues focus on the verification of liquid partners and, inadvertently, on the future of the Movement ecosystem. They also raise concerns regarding the internal controls of Movement Labs.
"And what about Sem Tapalia?" co-founder of The Block Mike Dudas interjected.
Tapalia, founder of Zebec Protocol, knows Movement Labs co-founders Rushi Manche and Cooper Scanlon from college. He advised Movement Labs, particularly regarding the launch of their MOVE token, including assistance in preparing for the airdrop.
His role was scrutinized after a controversial deal with a market maker from Rentech that led to a scandal involving the sale of tokens worth $38 million in December 2024. Speculation suggests that Tapalia was included in key emails regarding the deal with Rentech.
There are also suggestions that his influence as a 'shadow third co-founder' shaped last-minute decisions. However, Tapalia denied having any formal role, shares, tokens, or decision-making authority in Movement Labs or Movement Foundation.
Rushi Manche will provide clarity
Although he has not yet commented on the recent events surrounding his suspension, Manche has recently committed to providing clarity.
"...a lot of rumors and internal drama. I look forward to starting to clarify the situation, revealing the story, and clearing my name, starting with this article," he stated.
In a detailed post, Manche claimed that "opportunistic administrators" acting as shadow decision-makers in the fund misled the team.
"These representatives are the ones who make deals, manage financial treasuries, hire employees, and 'negotiate' behind the scenes, allowing others to take the blame," he added.
Calling on founders to work with reputable firms that do not have their own agendas, Manche expressed that Movement has significantly deviated from its initial vision.
It remains unclear whether this revelation led to his suspension, as Manche did not immediately respond to BeInCrypto's request for comment. However, following his statements, the MOVE token airdrop (Movedrop), expected on April 30, was postponed. As trust and reputation in the Movement Network continue to be questioned, the MOVE token has dropped nearly 22% in the last 24 hours. At the time of publication, it worsened its decline after the delisting announcement on Coinbase, trading at $0.20.#Write2Earn #BinanceSquare #Squar2earn #Binance #BinanceAlphaAlert $MOVE
