Movement Labs, the organization behind the Movement blockchain network, has officially ended its association with co-founder Rushi Manche as concerns mount regarding undisclosed arrangements related to the project’s MOVE token.
This development was confirmed on Tuesday via a post on the company’s official X account, which stated that Manche’s employment and connections have been concluded “effective immediately.”
As of now, Movement Labs has not designated a new leader or provided information on how it intends to reorganize its governance following this significant leadership transition.
Investigative Report Exposes TOKEN Deals Associated with Movement Labs
This decisive action follows a recent investigative report that revealed a series of undisclosed transactions between Movement-affiliated entities and external market makers during the initial launch phase of the MOVE token.
The report identified the presence of “shadow advisors,” secret payment agreements, and undisclosed allocations of MOVE tokens, all traceable back to Manche.
Manche had previously been suspended on May 2, shortly after Coinbase removed the MOVE token from its listings.
Movement Labs has terminated Rushi Manche. Movement will continue under different leadership.
Details on leadership changes and a revamped governance structure will be coming soon.
— Movement (@movementlabsxyz) May 7, 2025
The Coinbase delisting occurred amid heightened scrutiny from the community regarding the transparency and operational practices of Movement Labs.
Investors reacted quickly to the news, as MOVE tokens experienced an 8.5% decline in value within 24 hours of Manche’s departure, marking a total decrease of 35% over the previous week—a clear indication of growing investor apprehension.
Market makers are pivotal to the early success of digital assets, providing liquidity and facilitating their entry onto major exchanges.
However, improper use of these partnerships can have detrimental effects. A mid-April analysis warned that mismanaged market-making deals could erode confidence and ultimately destabilize projects.
Growing Worries About Market Manipulation
Concerns regarding manipulation within cryptocurrency markets have escalated in recent months.
Data from the summer of 2024 indicated that around 78% of new token launches since April were associated with problematic or inadequately disclosed market-making arrangements.
3) Furthermore to make things clear – we are not a charity (or foundation). Very much far from it, Wintermute (like any other prop trading firm) is in business of making money by trading. More specifically, our core business is trading digital assets. As such, we are very much…
— wishful_cynic (@EvgenyGaevoy) February 3, 2025
Several high-profile controversies have further fueled skepticism. Creditors of the insolvent crypto lender Celsius Network accused leading market maker Wintermute of engaging in wash trading with the CEL token.
In a similar manner, Fracture Labs lodged a lawsuit in late 2024 against Jump Crypto, alleging manipulation of its in-game token, DIO.
Additionally, DWF Labs faced accusations of artificially inflating trading volumes through undisclosed arrangements—claims that both they and Binance have denied.
In light of these growing concerns, U.S. regulators have intensified enforcement efforts, including a sting operation utilizing a fake token to identify nefarious activities.
A significant event occurred when a Massachusetts court recently imposed fines on CLS Global for fraudulent trading behaviors.
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