Key Takeaways:
- Movement Labs suspended co-founder Rushi Manche amid a probe into a controversial market-making deal that led to MOVE’s delisting from Coinbase.
- Web3Port’s sale of 66M MOVE tokens, arranged via Manche, crashed the price and triggered $38M in sell pressure.
- The incident adds to growing scrutiny of market makers in crypto, echoing past manipulation allegations across firms like Wintermute, Jump Crypto, and DWF Labs.
Movement Labs has suspended its co-founder, Rushi Manche, following a controversial market-making deal that led to the crash of the MOVE token and its delisting by Coinbase.
The suspension, announced on May 2, came after a deal Manche helped arrange between Rentech and Web3Port, which allegedly dumped 66 million MOVE tokens—5% of the total supply—causing $38 million in downward pressure on the market.
We confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of ongoing events and as the third-party review is still being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker.
— Movement (@movementlabsxyz) May 2, 2025
Coinbase later halted MOVE trading due to listing standard violations.
An independent investigation by Groom Lake, a private intelligence firm, is now underway, focusing on Movement Labs’ governance and the Web3Port agreement.
This incident adds to growing scrutiny of crypto market makers, who are vital for liquidity but can pose serious risks when acting without transparency.
Similar issues have surfaced in other cases, including wash trading accusations against Wintermute, lawsuits against Jump Crypto, and allegations involving DWF Labs.
Regulators have also taken action, with CLS Global fined for fraudulent trades and Gotbit’s founder extradited to face market manipulation charges.
The MOVE token crash highlights the dangers of misaligned incentives in market-making and has reignited industry-wide debate over how such roles should be regulated in decentralized finance.
Movement Labs’ future now depends on the investigation’s outcome.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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