Movement Labs Discontinues Co-Founder Rushi Manche, Causing MOVE to Relocate to ATL
Busting the Movement: A Troubled Crypto Venture's Untidy Breakup
Movement Labs, the force behind the Movement network, has parted ways with co-founder Rushi Manche in the wake of uncovered undisclosed token dealings and a disastrous market-making pact. This tumultuous split saw the MOVE token, Movement's native cryptocurrency, plummeting to unprecedented lows.
The leadership shakeup was announced on May 7 via Movement's official X account. The terse tweet only confirmed Manche's immediate exit, with vaguely mentioned future governance changes on the horizon.
The dismissal followed a CoinDesk exposé revealing shady agreements linked to the MOVE token launch, including cloaked advisor payments and questionable allocations to market makers. Internal docs and communications reviewed by the publication suggested Manche wielded a significant hand in brokering a deal between Movement Foundation and Singapore-based financier Galen Law-Kun's Rentech.
Under the agreement, Movement delivered a staggering sum of 66 million MOVE tokens (approximately 5% of the circulating supply) to Rentech with highly unusual terms. One condition allowed Rentech to liquidate its MOVE hoard once the token's valuation rocketed to $5 billion, pocketing profits alongside the Movement Foundation. Legal experts swiftly branded the deal reckless, citing its built-in incentives for manipulation.
Manche, 22, was placed on administrative leave on May 2, pending an evaluation by external governance consultancy firm Groom Lake. In communications prior to this, Movement's general counsel, YK Pek, had criticized the Rentech deal as "the worst deal I have ever seen." Nevertheless, a reworked agreement was green-lit.
Manche owned up to a blunder in judgment, accusing internal advisors and "manipulative administrators" of misleading him. Notable names surfacing in the aftermath include Zebec founder Sam Thapaliya, who denies formal involvement but was apparently included on sensitive emails and present during MOVE's San Francisco debut.
In a candid statement posted on X on April 30, Manche admitted to a brutal few weeks, confessing to trusting the wrong advisors and entering the bear market blindly. Manche also emphasized that all market-making decisions were consensual within the foundation, hinting at power struggles and misaligned incentives. He promised further disclosures in time.
The MOVE token's downward spiral has been painful. As this piece was being written, the token dipped to a shocking new low of $0.1566, a stark fall from its peak of $1.45 in December 2024[6]. The cryptocurrency is currently trading at $0.16, marking a 8.9% plunge in 24 hours, and a 34.9% decrease in value over the past week[6].
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Extra Insights:- The contentious market-making agreement between Movement Foundation and Rentech was initially rejected by the Movement Foundation due to concerns over its high-risk nature[5]. A revised agreement was signed on December 8, 2024.- Rentech actually offered $60 million in collateral to make the agreement more attractive[1][3].- Despite initial rejection, the decision to sign the revised agreement raised questions about the governance structure of the Movement Foundation and its risk management practices[3][4].- Rushi Manche's exact role in the negotiations and signing of the agreement remains unclear[1][3][4], and his involvement in establishing the original deal has not been documented.
- The turmoil surrounding Movement Labs, responsible for the Movement network, stems from undisclosed token dealings and a questionable market-making pact with Rentech, which involved the transfer of 66 million MOVE tokens.
- Crypto industry experts have criticized the deal between Movement Foundation and Rentech, deeming it reckless due to its built-in incentives for manipulation.
- Manche, the co-founder of Movement Labs, has been accused of brokering the deal with Rentech, which was met with vaguely mentioned future governance changes and his subsequent removal.
- Legal pressures and internal criticism have led to Manche owning up to a judgment error, blaming manipulative administrators and untrustworthy advisors for misleading him.
- The MOVE token, Movement's native cryptocurrency, has plummeted significantly due to the unfolding crisis, representing a misalignment of incentives within the crypto trading industry and the finance sector.
