The "Movement Labs" project suspends one of its founders amid a scandal involving a market maker: details
The company "Movement Labs" announced the suspension of co-founder "Roshi Manchi" following the revelation of a controversial deal with a market-making firm that led to the sale of $38 million worth of "MOVE" tokens and resulted in a trading ban on Binance and Coinbase, amidst a wave of sharp criticism from investors.
The deal, initially presented as a standard liquidity agreement, later transformed into a series of fraud allegations, involving unknown brokers, and left a significant impact on the project's reputation and the digital currency "MOVE".
Leaked documents reveal that the "Movement" foundation signed an agreement with an external company called "Rentech", linked to the Singaporean financier "Galen Lu-Kong", to provide liquidity through the Chinese company "Web3Port".
Under the agreement, nearly 66 million MOVE tokens, about 5% of the circulating supply, were transferred to "Web3Port" in a deal described by legal experts as unusual and fraught with risks, including a clause allowing for the liquidation of tokens once the project's value reached $5 billion, with profit-sharing.
When MOVE was listed on Binance on December 9, 2024, wallets associated with Web3Port began selling large amounts of MOVE digital tokens, resulting in intense selling pressure amounting to $38 million.
