Movement Labs Suspends Co-founder Rushi Manche Amid MOVE Token Crisis

Movement Labs faces one of its most delicate crises since its creation. The firm decided to suspend its co-founder, Rushi Manche

TL;DR: Movement Labs is facing one of its most delicate crises since the creation of the firm. The firm decided to suspend one of its co-founders, Rushi Manche, after he became involved in a series of accusations linked to the management of the MOVE token. This preventive measure was taken while an external investigation progresses, seeking to determine the level of internal responsibility in the operations under scrutiny.

Binance detected unusual movements and blocked the funds. The episode immediately impacted the market, triggering sharp drops in the token’s value. In the following weeks, information emerged about the firm involved in the massive sale.

Movement Foundation decided to cut ties with the implicated market maker and announced the buyback of $38 million in USDT from a new reserve. However, the situation generated distrust among investors and increased pressure on the project’s executive structure.

The investigation, led by Groom Lake, seeks to clarify whether Movement Labs’ top executives participated in the maneuvers or were deceived by external agents. The review also examines the relationships between Movement Labs, the foundation, and Rentech, due to the risks involved in handing over a considerable portion of the token supply to an entity without effective oversight.