Movement Labs, a crypto company funded by World Liberty Financial (WLFI), is coming under more scrutiny

Reports show that Movement Labs told some people they would be able to get up to 10% of MOVE tokens before everyone else.

Movement Labs, the crypto startup funded by World Liberty Financial (WLFI) is coming under more scrutiny after it became known that they had made secret agreements with early supporters. The company is said to have not told investors about a major agreement they had. This move has made a lot of people worried about how honest things are and could even end up with claims that people are being tricked. In the wake of the news, the MOVE token price fell more than 10.45% in the last 24 hours.

According to reports by Etherscan and Token Terminal, the startup, which is known for its anti-inflationary token, Pivot, informed seven early supporters that they would be able to get up to 10% of MOVE tokens before everyone else. This agreement, however, was not talked about or shared with the investors. The documents also show that the company gave a big chunk of its tokens to two advisers, including the CEO of Zebec, during its early investment rounds in 2023. These recent disclosures have made people worried about how the company is working.

Sam Thapaliya, an adviser for Movement Labs, was supposed to get about $2 million every year in exchange for his work. The documents also include that 5% of the total supply of the token was set aside for marketing and making sure the market stays active. However, according to Kessler, Thapaliya moved the tokens to a Chinese company called Web3Port after the launch, which the news website Etherscan says eventually dumped over $38 million worth of tokens.

Further investigation into the deal reveals that Thapaliya got to hold another 2.5% of the total MOVE tokens. Vinit Parekh, another early adviser, got a similar deal to the one Mr. Timken made. In his case, he got 2.5% of the tokens for every $1 million that Movement Labs managed to raise. These agreements have people worried about how much the company is willing to share with the public and how it works with its own employees.

The MOVE token, which had already been falling in value, dropped even more and is now worth only $0.195. This downturn comes after Coinbase stopped people from trading MOVE on its platform. Coinbase said it paused trading because it was worried that some trading might be affecting the market and wanted to make sure things were safe and fair. This news is just one more problem for Movement Labs as it tries to deal with accusations and questions being raised about what it does.