Movement Labs Suspends Co-Founder Rushi Manche Amid MOVE Token Controversy

Movement Labs has suspended its co-founder Rushi Manche following a sharp decline in the price of its MOVE token. The announcement was made via X (formerly Twitter) on Thursday, as the company investigates alleged token manipulation linked to a third-party market maker.

The decision comes after Coinbase delisted the MOVE token. According to a report by CoinDesk, Movement Labs is probing how a market maker allegedly tied to Web3Port acquired and offloaded more than 5% of MOVE’s total supply. The sudden sell-off led to a significant drop in the token’s price, sparking concerns about insider dealings and poor liquidity management.

The MOVE token, which powers Movement Labs’ modular blockchain infrastructure, plunged nearly 20% in the past 24 hours, based on CoinDesk’s market data. Binance had already banned the implicated market maker, Web3Port, from its platform due to past misconduct.

Industry analysts say this incident highlights the growing risks associated with token launch allocations and the need for stricter oversight in the crypto space. Movement Labs, a project building on the Move programming language, now faces mounting pressure to restore investor confidence amid scrutiny from major exchanges and the broader crypto community.

The fallout from the MOVE token crash is expected to have lasting implications for how emerging blockchain projects manage liquidity partnerships and transparency. As the investigation continues, investors remain wary of further volatility and potential enforcement actions.

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