Movement Labs has hired some of the founders Rushi

Movement Labs, the startup behind the Move ecosystem, has suspended co-founder Rushi Manche amid a series of challenges encountered by the project.

The startup confirmed the suspension in a statement, citing “ongoing events” and a third-party review by Groom Lake.

The startup confirmed Manche’s suspension in a statement.

The startup confirmed Manche’s suspension in a statement.

“We can confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of the ongoing events and as the third-party review by Groom Lake concerning the organization's governance and recent inci-dent which involved a market maker is still in process.”

What happened?

The genesis of Movement Labs' latest challenges can be traced back to December. This was when a market maker allegedly scooped up 66 million MOVE tokens and is estimated to have walked away with 38,000 USDT in profit.

The issue was discovered in March when Binance detected unusual activity, leading to the freezing of the relevant funds and reporting the matter to the Movement Foundation and Movement Labs.

The issue was discovered in March when Binance detected unusual activity, leading to the freezing of the relevant funds and reporting the matter to the Movement Foundation and Movement Labs.

Coinbase delisted the token

The startup also confirmed that the crypto exchange had delisted the token after instituting a limited trading.

In a notice to users, Coinbase stated that the token did not meet its listing requirements, leading to its removal from the exchange.

In a notice to users, Coinbase stated that the token did not meet its listing requirements, leading to its removal from the exchange.

It remains unclear what led to the delisting, but it comes amid a series of challenges for Movement Labs in recent months.

The Move token has also been performing poorly, with its price falling by 20% in the past 24 hours and 50% over the past 30 days. The price downturn presents a long-term erosion of investor trust as a result of the scandal.

In a bid to mitigate the damage, the Movement Foundation announced that it would be cutting ties with the implicated market maker. It was also stated that it would be undertaking a USDT buyback for 38 million from a new reserve.

However, the remaining implications of the market maker scandal and Coinbase’s delisting will dent on the scope of the investigation to assess the level of internal involvement.

Movement Labs has retained Groom Lake to conduct a governance review of the Movement in relation to the recent incident.

Movement Labs has retained Groom Lake to conduct a governance review of the Movement in relation to the recent incident.

Their investigation will be critical in determining the extent of any internal knowledge or participation by executives in the alleged market manipulation scheme.

The findings of this probe will be crucial for the future of the project as it faces both regulatory scrutiny and dwindling market confidence.

The relationship between Movement Labs, the Movement Foundation and Rentech will be a key focus.

Earlier reports by crypto news outlet TokenPost had suggested that Rentech held more than 5% of the total token supply in the project's management structure.