According to a CoinDesk investigation on May 15, 2025, the Trump-backed startup Movement Labs entered into secret agreements with advisors, promising them up to 10% of MOVE tokens without notifying investors. A leak of documents showed that CEO of Zebec Protocol, Sam Tapaliya, received 5% of tokens for marketing and 2.5% worth over $50 million at current prices. The deals made through Rentech caused a scandal, as tokens worth $38 million were dumped on the market, leading to a 50% drop in the price of MOVE. Coinbase suspended trading of the token on May 15, and co-founder Rushi Manche was fired following the revelation.
This case has damaged the reputation of Movement Labs and caused outrage in the crypto community. The company announced a rebranding to Move Industries and an audit of transactions. The scandal highlights the importance of transparency in crypto projects. Stay tuned for updates on #MiningUpdates
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