Co-founder of Movement Labs Rushi Manche has been suspended amid an investigation into a deal with a market maker that led to a dump of 66 million MOVE tokens.
The auditing firm Groom Lake 'is conducting a third-party review of organizational governance', the company stated.
According to a CoinDesk investigation, Rentech, which announced a partnership with Web3Port, received tokens to support liquidity. However, the contract contained a conflict of interest: Rentech acted simultaneously as a representative of Web3Port and an agent of Movement.
The lawyers of the latter called the agreement 'the worst of all possible'. However, Manche approved the deal anyway, CoinDesk reported.
On December 9, a day after MOVE was listed on exchanges, wallets associated with Rentech and Web3Port withdrew $38 million, triggering a price drop of 47%.
In March, Binance blocked the account of a market maker for 'violations', and Movement announced a token buyback to stabilize the market.
On May 1, the Coinbase exchange announced that it would suspend trading of MOVE, citing a scheduled asset audit.
At the time of writing, the project coin is trading at $0.2007 (-20.55% over the day), according to CoinGecko. Over the month, MOVE's quotations collapsed by 50.3%.
In April, the Movement Network team initiated an investigation into the 'market maker anomaly', and Manche took a 'temporary leave'.
