Movement Labs, the team behind the high-profile layer 2 blockchain project, made headlines recently with the suspension of co-founder Rushi Manche. The decision came after an ongoing third-party review focusing on organizational governance and recent incidents related to a market maker’s actions. This suspension has put the project under increased scrutiny, especially concerning its MOVE token.
Coinbase also announced that it would be halting trading of the MOVE token on May 15, shifting the MOVE order books to limit-only mode. While Coinbase did not specify the reason for the suspension, it stated that it followed a routine review of listing standards.
The Movement blockchain, which launched its mainnet beta and native token last December, faced criticism after Binance identified and froze the profits of a market maker allegedly liquidating large quantities of MOVE tokens. Manche publicly acknowledged the mistakes in an X post on April 30, admitting that the company had trusted the wrong advisors and made errors during a bear market.
Binance removed the unnamed market maker after discovering misconduct involving the sale of about 66m MOVE tokens. The market maker allegedly sold the tokens on Dec. 10, 2024, just one day after the token’s listing, resulting in a net profit of $38m USDT before Binance intervened.
The Movement Network Foundation claims it was unaware of the market maker’s actions until March 11, 2025. It severed ties with the market maker immediately and informed other major exchanges of the ongoing investigation. Additionally, Movement Labs is investigating whether it was misled into signing a market-making agreement that allowed a middleman, Rentech, to control the 66m MOVE tokens.
Internal documents suggest Rentech acted on both sides of the deal, raising conflict-of-interest concerns. The fallout exposed internal divisions, with Movement’s legal counsel initially opposing the deal but being overruled. The investigation is now focused on whether Rushi Manche or advisors like Sam Thapaliya had a deeper involvement than initially disclosed.
The suspension of Rushi Manche and the controversy surrounding the MOVE token have put Movement Labs under increased scrutiny. The project faces challenges as it navigates the aftermath of the market maker scandal and internal legal disputes. Stay tuned for further developments in this unfolding story.