Tech Company Movement Labs Dismisses Co-Founder Rushi Manche, Leaving Movement Ltd's Subsidiary MOVE in Turmoil
In a shocking turn of events, Movement Labs' co-founder, Rushi Manche, has been given the boot due to some shady token dealings and a risky market-making agreement that's left the Movement network's native MOVE token in tatters.
In a May 7 tweet on the official Movement X account, the firm announced Manche's departure with little explanation beyond promising changes in governance. But it was CoinDesk's exposé on Manche's secret token tie-ups that really set things off.
The revelation of hidden advisor payments, suspicious token allocations to market makers, and a questionable agreement with Rentech and Singapore-based financier Galen Law-Kun have shaken the crypto community to its core. This deal saw 66 million MOVE tokens, about 5% of the total supply, transferred under some questionable terms to Chinese market-maker Web3Port.
One deal provision even allowed the market maker to cash out once MOVE's valuation hit $5 billion, splitting the profits with Movement Foundation. Legal analysts have since described this deal as downright reckless, noting its manipulation incentives.
Rushi Manche has admitted to making a blunder, blaming it on misguided internal advisors and unscrupulous administrators, who he claimed wielded power behind the scenes. Facing heat, Manche was placed on administrative leave on May 2, pending an external review.
As things started to unravel, the names of renowned figures like Zebec founder Sam Thapaliya began to surface, though Thapaliya has denied any formal involvement in the token launch process.
In a personal statement on X, Manche said, "Mistakes were made," adding that the team "trusted wrong advisors, mms, and folks" during a bear market. He also maintained that all market-making decisions were approved collectively by the foundation.
The fallout for MOVE has been brutal. Upon news of Manche's dismissal, the token reached a new all-time low of $0.1566, a far cry from its $1.45 peak in December 2024. Currently trading at $0.16, MOVE has plummeted by 8.9% in the past 24 hours, and by 34.9% over the past week. This contrasts sharply with the global crypto market's modest 1.4% gain over the same period.
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- The controversial deal with Chinese market-maker Web3Port, which resulted in the transfer of 66 million MOVE tokens and questionable terms, has been a significant topic in the crypto industry, raising concerns about market manipulation.
- Amidst the fallout for MOVE, the native token of the Movement network, some industry experts have referred to Movement Labs' dealings as downright reckless, citing manipulation incentives.
- The crypto trading industry has been abuzz with discussions about the implications of the Movement Labs' shady token dealings and risky market-making agreements on the broader finance sector, with many warning of potential risks for other projects.
