Movement Labs Rebrands as Move Industries Following Market Manipulation Scandal

Movement Labs, a layer-2 blockchain project behind the MOVE token, is undergoing a major overhaul after a market manipulation scandal

Movement Labs, the layer-2 blockchain project behind the MOVE token, is undergoing a major overhaul after a market manipulation scandal wiped out billions in market value.

As part of a leadership shake-up, the company has rebranded to Move Industries, announced the departure of CEO Rushi Manche, and unveiled several key leadership changes. These moves are part of a broader effort by the company to regain community trust after a turbulent period.

Leadership Shake-Up After Market Manipulation Scandal

On April 30, allegations surfaced that Movement Labs had granted 66 million MOVE tokens to a firm named Rentech—an entity with minimal digital presence and alleged ties to both the Movement Foundation and Web3Port. This agreement would allow Rentech to sell the tokens almost immediately after Movement Labs’ debut, leading to a $38 million sell-off and a significant drop in MOVE’s price.

The MOVE token fell from a high of $1.45 to about $0.16 as word of the transaction circulated, so destroying more than $2.5 billion in market value. Citing concerns over transparency and market manipulation, Coinbase said it would halt MOVE token trading beginning May 15.

Movement Labs quickly moved to contain the damage. On April 28, the company suspended CEO Rushi Manche. Two days later, Manche was formally terminated, and Movement Labs announced the start of a new era under different leadership.

Movement Labs Rebrands as Move Industries

Announced on April 29, the rebranding of Movement Labs to Move Industries marks a significant shift for the company as it seeks to reset its public image and strategic direction. This comes after the collapse of MOVE’s value and the fallout from the leadership scandal.

The company also introduced Torab as the new CEO and Vibe Sommalier as President and CMO. The new team has pledged to implement a more transparent and robust governance model, as well as key technical upgrades to the Movement Network.

In a post shared via X (formerly Twitter), the new leadership said the project is moving “from hype to action.” Among the initiatives they plan are Parthenon, a forthcoming technical upgrade, and MoveDrop, a new distribution campaign designed to revitalize the community.

MOVE Token Collapse and Community Fallout

The MOVE token debuted in December 2024 with significant hype and strong market performance. Within a few weeks, it reached a market cap of $3 billion, fueled by investor enthusiasm and anticipation of the ecosystem’s development.

However, following the token dump linked to Rentech and the unfolding of the internal scandal, MOVE’s market cap plummeted to $496 million by May 2025. The token’s value now stands at $0.16, marking a decline of more than 84% from its all-time high.

Investors and analysts have highlighted the lack of internal controls and the presence of conflicts of interest as key factors in the collapse. Rentech’s dual role as both a market participant and an entity linked to the Movement Foundation raised significant concerns about self-dealing and market manipulation activities.

Future Plans and Industry Reactions

Move Industries has launched a token buyback program in an effort to stabilize MOVE’s price and provide some reassurance to investors. At the same time, they are continuing an internal investigation to determine the full extent of accountability within the original leadership team.

Reactions from the sector have been mixed. Some view the rebranding and change in leadership as a step in the right direction, while others remain more skeptical.

The situation serves as a cautionary tale in the cryptocurrency sector, highlighting the critical importance of transparency, compliance, and strong governance systems in emerging blockchain initiatives.