Movement Labs Accused of Having Ties with MM for Manipulating MOVE Price

On April 30, 2025, an exclusive report from CoinDesk highlighted the complex relationship between Movement Labs and intermediary partners, while shedding light on the alleged token price manipulation of MOVE. This manipulation not only pushed Movement Labs into a crisis of trust but also highlighted internal conflicts and a risky token distribution method.

Ambiguous Contract and the Involvement of Intermediary Partners

A contract signed between Movement Foundation and the intermediary company Rentech caused a public uproar. The contract required Rentech to borrow 5% of the total MOVE token supply and encouraged price manipulation after listing. Notably, the contract was initially rejected due to risky terms but was ultimately signed by Movement Foundation just two days before Binance listed MOVE.

The post-listing result was a sharp price drop, with 66 million MOVE tokens being dumped on the market. Binance subsequently banned the activities of Web3Port, a market maker associated with Rentech, and requested Movement Labs to buy back tokens to mitigate the consequences.

Internal Conflicts and the Role of Unofficial Advisors

Besides market issues, Movement Labs also faced serious internal conflicts. An internal investigation was initiated, leading to the suspension of co-founder Rushi Manche. The report also indicated that Sam Thapaliya, an unofficial advisor, played a crucial role in drafting the controversial contract. Other figures like Galen Law-Kun and YK Pek were also accused of participating in establishing a conflicting contract structure.

Timeline and Long-term Impact

The MOVE token price manipulation actions created a series of negative events, from Binance banning the price-manipulating market maker to the community losing trust in token governance and distribution. Although Movement Labs was once expected to become a prominent layer-2 project with the Move programming language, the current crises have created a difficult-to-erase stain in the project's development history.

Also Read: Binance Removes a Movement (MOVE) Market Maker for Market Manipulation