**🚨 Movement Labs in Crisis: Co-Founder Suspended Amid $38M MOVE Token Scandal**

**📌 Breaking News:**

- **Co-founder Rushi Manche suspended** as third-party audit investigates market manipulation

- **Coinbase delisting MOVE** on May 15 (already in limit-only mode)

- **Binance froze $38M** from suspicious market maker activity

- **MOVE price crashed 90%+** from ATH ($2.50 → $0.20)

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### **🔍 What Went Wrong?**

1️⃣ **Pump & Dump Scheme**:

- Market maker dumped **66M MOVE tokens** (worth $38M) just **1 day after listing**

- No buy orders placed → artificial price inflation → massive sell-off

2️⃣ **Shady Market Maker Deal**:

- Signed with **Rentech** (claimed to be Web3Port subsidiary but has no digital presence)

- Controlled **5% of MOVE supply** with profit-sharing incentives

- Internal legal team opposed but was overruled

3️⃣ **Leadership Failures**:

- Manche admitted "trusted wrong advisors" in bear market

- Questions about co-founder's direct involvement

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### **⚖️ Fallout & Investigations:**

- **Binance banned market maker**, froze proceeds (March 2025)

- **Groom Lake conducting forensic audit**

- **Exchanges alerted** about potential manipulation

- **SEC scrutiny likely** if fraud confirmed

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### **💡 Lessons for Crypto Investors:**

⚠️ **Red Flags**:

- Overly aggressive market-making deals

- Unexplained token dumps post-listing

- Opaque business relationships

🔍 **DYOR Tip**:

- Always verify market maker partnerships

- Watch for abnormal volume spikes

#MovementLabs #MOVEScam #CryptoRegulation #Binance #Coinbase