Market Maker Scandal Rocks Movement Labs: Co-Founder Suspended!

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Movement Labs, dear reader, has found itself embroiled in a most vexing scandal. The unfortunate tale begins with the suspension of co-founder Rushi Manche, who, it seems, is now the subject of intense scrutiny following a most dubious market-making arrangement. This deal, as some would say, led to a rather tragic dump of $38 million in tokens, coupled with bans from Binance and Coinbase, and, naturally, much public outrage from investors. Oh, the joys of the modern world!

What was once presented as a humble liquidity agreement has unfolded into a most tangled affair of alleged deception, shadowy intermediaries, and internal chaos, all of which now threaten the very reputation of Movement’s beloved MOVE token. How delightful!

The Deal That Went Quite Wrong

The crux of this scandal lies in an arrangement between Movement Foundation and a mysterious third-party named Rentech, said to be represented by one Galen Law-Kun, a financier from Singapore (of course). According to leaked contracts and internal communications, Rentech was tasked with the noble role of ensuring liquidity for MOVE, all while relying on Chinese market maker Web3Port.

In an odd turn of events, it was decided that 66 million MOVE tokens—about 5% of the circulating supply, mind you—would be handed over to this obscure firm. And pray, under what terms, you ask? Well, it seems that the agreement was “unusual” and, as some legal experts have been heard to say, downright “reckless.” Ah, what a merry mess!

One particularly curious provision of this agreement allowed Web3Port to liquidate tokens if MOVE’s valuation ever reached a delightful $5 billion, with the profits split down the middle between Web3Port and the Movement Foundation. A rather dubious incentive for some, I daresay—one which certainly encouraged the unfortunate “pump and dump” that followed.

It was, of course, not long before, on December 9, 2024, when MOVE was launched on Binance, that wallets connected to Web3Port began dumping their tokens in a most conspicuous manner. A $38 million sell-off ensued, as tokens tumbled down in value, and, as you might expect, Binance swiftly banned the market maker for a breach of contract. Truly, a delightful spectacle for all involved!

The exchange also informed Movement Labs of the scandal, prompting the Foundation to declare that they had, indeed, been unaware of Web3Port’s questionable activities. They immediately severed ties, as any sensible person would.

Not to be outdone, Coinbase, in a most dramatic turn of events, announced that it would suspend MOVE trading on May 15, citing the token’s failure to meet the lofty standards required for such a listing. And as if that were not enough, the exchange moved to limit-only mode, tightening the noose on what has become a most unfortunate reputational disaster.

Manche’s Misfortune

The foundation’s general counsel, one YK Pek, had initially remarked that the proposal between Movement and Rentech was “the worst deal I have ever seen.” Yet, somehow, a revised version of this very same deal was signed, leaving many to wonder who, pray tell, had the gumption to push it through.

Co-founder Manche, as it turns out, is said to have played an integral role in circulating this fateful deal within the company, and as such, has now been placed on administrative leave. A third-party investigation, led by Groom Lake (yes, you heard me correctly), is currently underway to determine who is truly responsible for this most lamentable series of events.

“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,” read the brief and rather dry statement issued on X.

In a final twist of irony, the 22-year-old co-founder, Mr. Manche, claims he was deceived by someone within the foundation. Rumors, as you might imagine, have pointed their accusatory fingers at unofficial advisor Sam Thapaliya, who, despite his protestations, was apparently very much involved behind the scenes. According to insiders, he was not only copied on important emails but was also present at the chaotic token launch in San Francisco. A most mysterious figure indeed.

Following Mr. Manche’s suspension, MOVE’s price dropped by a staggering 27%, plummeting from a high of $0.2543 to a new all-time low of $0.1848. Ah, the volatility of the digital world—truly, it is a thing of wonder!

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2025-05-02 14:00