MOVE Token Drops 20 % as Movement Labs Suspends Co-Founder Amid Coinbase Delisting

Movement Labs, a blockchain startup, has faced major setbacks. The startup focused on modular execution layers has fallen into controversy following a market-making scandal involving its MOVE token. On May 2, 2025, Movement Labs suspended co-founder Rushi Mache as part of an investigation and has suspended him from the company. This suspension move was made due to the allegation and suspicion amid an ongoing investigation that is linked to a market maker. This decision came shortly after Coinbase announced it would suspend trading of the MOVE token.

Coinbase Delisting and MOVE’s Price Plunge

The MOVE token price took a significant backlash after the Coinbase announcement of delisting, citing non-compliance with the listing standards. Despite not explicitly citing market manipulation, Coinbase has already placed the token in limit-only mode. This shows growing concerns about its volatility and the integrity of its market. 

This move added fuel to the fire following the December 2024 incident. When a market maker reportedly sold 66 million MOVE tokens for an estimated $38 million in profits. This market token dump caused the price to drop instantly and fall to very low levels, sparking accusations of insider trading and market speculation. 

Alleged Market Maker Manipulation

The controversial situation was caused because a market maker allegedly linked to Wev3Port was found to have sold a massive portion of the MOVE supply. According to some reports, the firm responsible for the sale controlled more than 5% of the total token supply. And was involved in inflating the MOVE’s valuation before the planned sell-off. 

This results in concerns being raised regarding Movement Labs’ governance and the transparency of its tokenomics. Despite the allegations, the firm acted swiftly and suspended its co-founder, Rushi Mache. And did a third-party review that was led by a digital asset risk and compliance firm, Groom Lake. This firm focuses on investigating the market, making deals, the token distribution, and internal communication with the Movement Labs. 

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.

— Movement (@movementlabsxyz) May 2, 2025

The Growing Fallout from the Scandal

With the scandal getting more heated, the ramifications extend beyond just the company. The delisting of MOVE from Coinbase, which is one of the largest crypto exchange platforms globally. This has severely impacted the token price and visibility. The MOVE price dropped by 14% earlier when this news spread, resulting in a negative impact on the Movement Lab’s reputation. 

MOVE/USD chart, published on Tradingview, May 2, 2025

The MOVE token is currently trading at $0.2003, marking a 7.46% increase with a gain of $0.0139 over the previous trading session. This rebound, as discussed, is followed by a sharp 14% decline triggered by the controversy. There is a clear downtrend in the chart that can be seen since March.

The Importance of Governance and Transparency

The ongoing investigation into Movement Labs’ role in the scandal highlights the need for better governance and transparency in the crypto world. A market maker can either bolster the success of a token or destroy it, depending on the incentives. When market makers manipulate token supply and price, it not only undermines the integrity of the project but also impacts and erodes the investors’ trust. Movement Labs’ reputation is now dependent on the third-party investigation and the actions taken to address the scandal. Investors, partners, and regulators are closely watching how the company handles this crisis. Only the outcomes may serve as a benchmark for other Web 3 and blockchain startups. 

Broader Industry Implications

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