Amid the ongoing controversy on MOVE token, Movement Labs has suspended one of the co-founders of the Movement Network, Rushi Manche, over the market-making scandal.
The move came just a few hours after Coinbase announced the delisting of MOVE token from its trading platform.
In a latest X post, Movement Labs confirmed that Rushi Manche has been suspended from the firm, with the action following accusations of involving an illegitimate market-making entity that dumped nearly $38 million of MOVE tokens in December, when the token was initially launched via a public airdrop.
“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,” said the team.
A recent report from CoinDesk noted that under Rushi Manche’s leadership, Movement Labs signed a market-making contract with Rentech. The reporting claimed that Rentech was misrepresented as a subsidiary of Web3Port, which appears to be a separate entity with no presence on the internet.
Furthermore, the agreement revealed that Rentech controlled around 5% of MOVE’s supply, with incentives to inflate the token’s price to a $5 billion valuation before dumping it for shared profits.
Following controversy, the MOVE token has been hit by a stiff downtrend, with it dropping nearly 22% in the past 24 hours. At the time of writing, MOVE is trading near $0.1960, which is down 86% from its December highs.
Also read: Ripple Moves 500 Million XRP Worth $1.1 Billion, What’s Next?
