Co-Founder of Movement Labs Put on Leave Amid Scandal Involving Market Maker: Complete Breakdown

Movement Labs has suspended co-founder Rushi Manche due to a scandalous market-making deal which resulted in a $38 million token dump and trading bans on Binance and Coinbase, triggering widespread investor criticism. The root of the issue lies in an ill-fated deal between Movement Foundation and a third-party, Rentech, fronted by financier Galen Law-Kun.

Rentech was supposed to facilitate liquidity for Movement's native MOVE token through Chinese market maker Web3Port. However, the deal contained unusual provisions which led to a massive sell-off of MOVE tokens, causing its value to plummet. Following this, both Binance and Coinbase severed their ties with the implicated market maker.

Manche is under investigation, while MOVE's price has dropped by over 27%. This scandal has raised questions about the integrity of Movement Labs and the future of MOVE.