Movement Labs Suspends Co-founder Rushi Manche Following Allegations of Dumping MOVE Tokens

Movement Labs has suspended a co-founder, Rushi Manche, following allegations that a third party is dumping Movement [MOVE] tokens.

In an X post on Wednesday, the firm announced,

“We can 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.”

According to an initial report by CoinDesk, Web3Port Labs received 66 million MOVE tokens, 5% of the total supply, from Rentech to dump on exchanges after the token debuted.

The market-making firm's actions drove MOVE below $0.30.

Coinbase to suspend MOVE

As the details unfolded, a firm known as Rentech reportedly signed a deal with both Web3Port Labs and Movement Labs. Through Rentech, Web3Portal acquired the 5% MOVE circulating supply that was dumped on exchanges.

Moreover, Binance banned the MMs' accounts that sold the token.

However, Manche refused to take responsibility and implicated the entire Foundation team. In an X post on Saturday, he said,

“Any MM decisions were approved and supported by the entire foundation team. There were bad parties involved that corrupted the process (by representing both sides to profit), and the team is in the converging on who and what happened.”

Coinbase will also be suspending trading of the token on May 15.

This update saw the token plummet 27% during the trading session on Monday. Overall, the token has dropped 86% from a record high of $1.4 to below $0.20.

Although the dump eased at key trendline support, whether the token will hold above it remains to be seen.

Movement is an Ethereum [ETH] layer-2 blockchain backed by World Liberty Financials (WLFI). In fact, according to Arkham data, Trump’s WLFI still holds 7.5 million MOVE tokens (roughly $1.3 million) despite the scandal.