The Movement Labs ecosystem is facing mounting pressure as co-founder Rushi Manche has been suspended amidst ongoing investigations into market maker activities. This development follows a period of soured sentiment surrounding the project, exacerbated by Coinbase’s recent announcement of plans to delist its MOVE token.
Movement Labs confirmed Manche’s suspension, stating that the 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.” This move intensifies the scrutiny surrounding alleged misconduct involving Web3Port, a market maker accused of dumping 66 million MOVE tokens, causing a significant 20% price crash. Adding to the turmoil, Binance had previously penalized another market maker associated with the Movement project for trading regulation violations, freezing their profits.
We 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.
— Movement (@movementlabsxyz) May 2, 2025
Third-Party Investigation and Lingering Questions
Movement Labs initiated a third-party investigation into the alleged market maker misconduct during a period when Manche was reportedly on temporary leave. While Manche had previously disputed reports of his departure, asserting his continued involvement, his subsequent suspension suggests that the ongoing investigation may have unearthed new information.
Very much still at Movement. Missed company offsite because I was in Asia for Web3Festival.
— rushi (@rushimanche) April 15, 2025
Weird reporting from @Blockworks_ once again
The unfolding situation raises critical questions about Movement Labs’ due diligence processes in vetting liquidity partners and the effectiveness of its internal controls. Observers are also questioning the role of Sam Thapaliya, the founder of Zebec Protocol, who advised Movement Labs on their MOVE token launch. Thapaliya’s involvement came under scrutiny following a past market-making agreement scandal involving Rentech. Speculation had arisen regarding his potential influence within Movement Labs, though he has denied holding any formal role or decision-making power.
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Manche Promises Clarity as MOVE Token Plummets
Despite his suspension, Rushi Manche has publicly stated his intention to provide clarity on the unfolding situation. He alluded to “opportunistic administrators” acting as shadow decision-makers within the foundation who allegedly misled the team and brokered deals behind the scenes. Manche urged founders to work with reputable firms, indicating a significant deviation from the original vision of the Movement project.
The recent developments, coupled with the earlier Coinbase delisting announcement, have severely impacted the MOVE token’s market performance. In the last 24 hours alone, the token has plummeted by nearly 22%, trading at approximately $0.20 at the time of writing. The delay of the anticipated MOVE airdrop (Movedrop) has further fueled frustration within the community, casting a shadow over the future credibility and reputation of the Movement Network.
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
