Movement Labs has suspended Rushi Manche, its co-founder, following a third-party investigation into internal governance and market activities. The decision comes amid rising scrutiny surrounding the MOVE token and growing investor concerns. Market reactions intensified after Coinbase announced the upcoming suspension of MOVE trading on its platform.
Coinbase to Halt MOVE Token Trading
Coinbase has decided to halt trading of the MOVE token starting May 15 due to concerns following a standard review. Since its move to limit-only mode, the exchange has restricted user trading access to the token order books. Coinbase has not disclosed a detailed reason, but the move aligns with recent token controversy.
Coinbase to Halt MOVE Token Trading
The Movement blockchain launched its beta mainnet and native MOVE token in December 2024. Market professionals have pressured the token since it encountered suspicious activities from a massive market maker participating in trading. Market instability escalated when Binance flagged and froze profits linked to an early MOVE token selloff.
Coinbase’s suspension comes amid growing criticism of Movement Labs’ token release process. At the time of the listing, many investors chose to sell their holdings, considering this to impact overall investor trust negatively. The token’s trading amount has decreased consistently throughout the past two months.
Movement Labs Faces Oversight Failures Fallout
On December 10, 2024, a market maker allegedly sold 66 million MOVE tokens, gaining approximately $38 million in USDT. This activity occurred just one day after MOVE’s public listing without sufficient buy-side orders, disrupting price stability. March 2025 marked when Binance completed its investigation into the entity leading to its permanent trading restriction.
The Movement Network Foundation, which claims it received information on March 11, was not immediately aware of the market maker’s actions. The foundation executed the agreement termination after confirmation, which prompted notifications to numerous exchanges about the discovered fraud. Binance implemented a freezing protocol regarding the profits and a warning about the entity’s violation of trust obligations.
Movement Labs confirmed it had engaged the market maker based on its previously clean record. The organization’s internal audit discovered essential problems in oversight and decision-making. The investigation results led to more detailed research of internal contractual agreements and assessment of intermediaries’ deceptive activities.
We confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of ongoing events and as the third-party review is still being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker.
— Movement (@movementlabsxyz) May 2, 2025
Rentech at the Center of MOVE Investigation
The investigation now centers on Rentech, a middleman allegedly controlling the 66 million MOVE tokens sold during the incident. Documents indicate Rentech participated in both aspects of real estate transactions, creating serious doubts about potential misconduct. The link between Rentech and Web3Port produces a complex situation in this case.
Rentech at Center of MOVE Investigation
Movement Labs suspects it may have been misled into signing a market-making agreement that lacked sufficient oversight and approval. Legal advisors opposing the agreement allowed the deal to pass towards implementation because of internal hashing disagreements. The deal faces detailed evaluation from authorized parties who study whether internal procedures were broken during its approval cycle.
Rushi Manche was suspended after disclosing events about Sam Thapaliya and his advisors possibly being involved. To prevent additional problems from arising, the company will perform a complete audit of governance procedures. Waiting stakeholders depend on the results from the third-party review for their strategic guidance.
FAQs
Why was Rushi Manche suspended?
Manche was suspended amid a third-party review investigating governance lapses and a controversial token selloff involving a market maker.
What is the MOVE token?
MOVE is the native token of Movement Labs’ Layer 2 blockchain, launched during its beta mainnet release in December 2024.
Why is Coinbase halting MOVE trading?
Coinbase cited a routine listing review, though the decision follows increasing concerns about the token’s market stability.
What did Binance discover?
Binance found a market maker had sold many MOVE tokens shortly after launch and froze $38 million in profits.
What is Rentech’s connection to the incident?
Rentech allegedly controlled the tokens and acted as both agent and counterparty, raising potential conflicts of interest.
Glossary of Key Terms
Market Maker – A firm or entity that provides liquidity in trading markets by buying and selling large volumes of tokens or assets.
Mainnet – The fully developed and live version of a blockchain where actual transactions occur, as opposed to a testnet or beta.
USDT – A stablecoin called Tether, pegged to the US dollar, is often used in cryptocurrency trading for liquidity and settlement.
Limit-Only Mode – A trading status where only limit orders can be placed, restricting immediate market execution.
Conflict of Interest – A situation where one party has competing interests or roles that could influence impartial decisions.
Reference:
X
Coindesk
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