Movement Labs Cuts Ties with Co-Founder Amid MOVE Token Scandal

Movement Labs, the development team behind the Movement network, has officially terminated co-founder Rushi Manche following revelations of undisclosed deals related to the MOVE token. The announcement was made via the company’s official X (formerly Twitter) account early Tuesday, stating that Manche’s employment and all affiliations were ended “effective immediately.”

The move comes after a CoinDesk investigation uncovered secret agreements between Movement-linked entities and market makers during the project’s token launch. According to the report, internal documents and investor correspondence revealed shadow advisors, concealed payment flows, and unreported token allocations involving Manche.

Coinbase had delisted the MOVE token on May 2, just before Manche’s suspension, amid rising concerns over the project’s transparency and governance. Pressure from the community had intensified over opaque operational practices, prompting demands for accountability.

Movement Labs has yet to announce a successor or detail plans for restructuring its governance. The company is under scrutiny as investors and token holders seek clarity on how the decentralized project will move forward post-controversy.

In the wake of the announcement, MOVE token prices dropped 8.5% in 24 hours and are down 35% over the past week, reflecting market uncertainty. The situation has triggered broader conversations about trust and due diligence in crypto project management and token distribution practices.

The fallout from the Manche controversy underscores the importance of transparency, especially in early-stage blockchain ecosystems where investor confidence is vital. With the MOVE token now under pressure and no clear leadership transition plan in place, Movement Labs faces significant challenges in restoring its credibility and regaining community trust.

This incident highlights the growing demand for accountability in token launches and the potential risks of behind-the-scenes dealings in Web3 governance.