Movement Labs confirms the suspension of co-founder Rushi Manche following a market-making scandal.
"This decision was made after ongoing events and while a third-party assessment by Groom Lake on organizational governance and related incidents is still continuing," Movement Labs said in a post on X on Thursday evening.
This scandal has led Coinbase to plan to suspend MOVE token trading from May 15. Manche's suspension occurred just hours after the cryptocurrency exchange announced this.
After launching the beta mainnet and native token in December, a market maker was accused of selling 66 million MOVE tokens, generating 38 million USDT in profits, according to a Binance investigation in March. Binance said it informed Movement Labs and Movement Foundation about abnormalities related to their market maker and froze the proceeds.
Movement Labs is said to have contracted a market maker with Rentech, a company misrepresented as a Web3Port subsidiary but actually a separate entity with no online presence. Contracts revealed that Rentech controlled about 5% of MOVE's supply, with motives to inflate the token's value to $5 billion before dumping to share profits, raising concerns about self-dealing.
The organization has requested a third-party investigation into the incident.
"Movement Labs and Movement Network Foundation have tasked Groom Lake with conducting a comprehensive review of the market maker's abnormalities," Movement Labs said. "Groom Lake's review is ongoing. When we have full details, we will publish the results."
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The article Movement Labs suspends Rushi Manche due to market-making scandal first appeared on CoinMoi.
