Movement Labs suspends co-founder: MOVE faces 27% drop as Coinbase moves to delist
MOVE dumps 27% amidst Coinbase's trading suspension plan.
- Movement Labs suspended co-founder Rushi Manche for alleged links to the MOVE token dump.
- Coinbase will suspend the token on the 15th of May, but Manche denied involvement in the scandal.
Movement Labs has suspended its co-founder, Rushi Manche, following allegations of dumping Movement [MOVE] tokens via a third party.
In an X post on the 2nd of May, the firm disclosed,
“We confirm that Rushi Manche has been suspended from Movement Labs. 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.”
According to an initial report by CoinDesk, Web3Port Labs received 66 million MOVE tokens, 5% of the total supply.
After the token debuted on exchanges, the Web3Port Labs dumped the whole stash and dragged MOVE below $0.30.
Coinbase to suspend MOVE
Per the details revealed, a firm known as Rentech reportedly signed a deal with both Web3Port Labs and Movement Labs.
It was through Rentech that Web3Portal acquired the 5% MOVE circulation supply that was dumped on exchanges. Allegedly, Munche pushed for the RenTech deal.
Also, Binance banned the market makers’ (MM) accounts that sold the token.
But Manche denied responsibility and implicated the entire Foundation team. In an X post on the 30th of April, he stated,
“Any MM decisions were approved and supported by the entire foundation team. There were bad parties involved that corrupted the process (by representing both sides to profit), and the team is in the process of investigating.”
Coinbase also announced that it will suspend trading of the token on the 15th of May.
This update triggered a 27% plunge during the trading session on the 1st of May. Overall, the token has declined 86% from a record high of $1.4 to below $0.20.
Although the dump eased at key trendline support, whether the token will hold above it remains to be seen.
Movement is an Ethereum [ETH] layer-2 blockchain backed by World Liberty Financials (WLFI).
In fact, according to Arkham data, Trump’s WLFI still holds 7.5 million MOVE tokens (worth $1.3 million) despite the scandal.
