Movement Labs suspends co-founder Rushi Manche over 66 million MOVE token dump allegations.

Rushi Manche, co-founder of Movement Labs, was suspended on May 2, 2025, amid allegations of a substantial MOVE token dump.

May 2025 — Cryptocurrency co-founder Rushi Manche was suspended by Movement Labs on Friday amid allegations of a massive token dump.

The allegations, which are currently under investigation, involve the alleged sale of 66 million MOVE tokens. The incident has also led to major exchanges, such as Coinbase, taking action by suspending MOVE trading pairs.

What Happened: Manche, co-founder and president of Movement Labs, is under investigation following allegations of unauthorized sales of tokens. The startup, which is facing immense scrutiny, has enlisted the services of Groom Lake to conduct an inquiry into the incident.

The investigation is focusing on claims that a group fraudulently sold 66 million MOVE tokens, which were then used to purchase WETH, which was subsequently sold on Uniswap (CRYPTO: UNI) to collect 38,000 ETH (about $67.3 million at current prices).

The situation underscores the challenges and complexities of decentralized finance, where the lines of responsibility and accountability can become blurred.

These actions have resulted in a significant decrease in the value of MOVE tokens. Since the beginning of 2025, the token has depreciated by approximately 80%.

Major exchange Coinbase has announced the suspension of MOVE trading pairs, highlighting the serious market repercussions of the allegations.

Crypto Project Governance in Focus: The implications of the scandal extend beyond financial loss, raising concerns about the integrity and transparency of crypto project governance.

A source close to the situation informed Benzinga about Coinbase's decision to suspend MOVE trading pairs.

"We are suspending all Movement (MOVE) trading pairs starting May 15, 2025, to align with our listing standards," stated Coinbase in an email response.

The outcome of the investigation will have technological and regulatory implications, setting precedents for future governance protocols in blockchain projects.

"The investigation will determine whether any Movement executives were directly involved in the alleged scheme or were misled by those who carried out the scheme," said Groom Lake.

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The investigation is expected to take several months to complete, with the findings to be released on the Movement website.

"We are aware of the allegations circulating online regarding the sale of MOVE tokens," a Movement spokesperson told Benzinga. "This matter is currently under investigation by Groom Lake, and we will provide an update upon its completion."

The startup's statement added, "At Movement, we are committed to operating with the highest level of integrity and transparency. We take all allegations seriously and will cooperate fully with the relevant authorities."