Movement Labs Faces Scandal Over Hidden Market-Making Deals in MOVE Token Launch
In April 2025, Movement Labs became embroiled in a scandal involving hidden market-making arrangements tied to the launch of its MOVE token. The company had signed a contract with intermediary firm Rentech, described as a subsidiary of Web3Port and an agent for the project, granting Rentech control over approximately 66 million MOVE tokens, representing about 5% of the total supply.
These Rentech-controlled MOVE tokens were rapidly sold on the market, leading to a significant price collapse and backlash from investors. In response to the fallout, several major exchanges, including Coinbase, either suspended or delisted the MOVE token.
The incident triggered a leadership shake-up at Movement Labs, as the company suspended co-founder Rushi Manche pending a third-party governance review and later announced his firing. The scandal also caused reputational damage for Movement Labs along with a steep decline in the token's value.
Beyond the company, this episode heightened industry-wide concerns about opaque token allocations and insider trading practices. It prompted increased scrutiny from exchanges, investors, and regulators toward early-stage token deals in the blockchain and crypto space.
