Movement Labs confirmed that its co-founder, Rushi Manche, has been suspended from the organization following a market-making scandal.

Following the December launch of Movement Network's mainnet beta and native token, a market maker allegedly sold off 66 million $MOVE tokens, ultimately netting 38 million USDT in profit, according to Binance's findings in March.

Movement Labs allegedly signed a market-making agreement with Rentech, which was misrepresented as a subsidiary of Web3Port but appears to be a separate entity with no digital presence, CoinDesk first reported. Contracts revealed that Rentech controlled around 5% of MOVE’s supply, with incentives to inflate the token’s price to a $5 billion valuation before dumping it for shared profits, raising concerns about self-dealing.