Movement Labs Suspends Co-Founder Amid Market Scandal

Movement Labs has suspended co-founder Rushi Manche on May 2, 2025, following investigations into governance issues and a scandal involving a market maker in the MOVE token.

This action highlights the challenges faced by the organization in maintaining trust and compliance, as major exchanges take decisive measures affecting the token’s trading.

Movement Labs Suspends Co-Founder Over Governance Probe

Movement Labs announced Rushi Manche’s suspension through their official X account, citing governance investigations and market maker controversies. This decision comes amid ongoing market turmoil and measures imposed by exchanges due to token-related issues.

Rushi Manche, a co-founder, admitted errors were made during a bear market due to misplaced trust in advisors. Investigations by Groom Lake into the relationship with a market maker signal deep governance concerns.

“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.”

Major Exchanges Respond to MOVE Token Scandal

The MOVE token has dropped by approximately 20% as major exchanges, like Coinbase, have either limited or delisted the token. Coinbase and Binance have taken significant steps in response to allegations of market manipulation.

Binance’s decisive action includes freezing profits of a market maker accused of improper liquidation of MOVE tokens. This signals heightened regulatory compliance, aiming to prevent future manipulations and stabilize community trust.

Crypto Governance Issues Spur Exchange Scrutiny

Similar cases in the crypto industry have seen major exchanges enforce strict measures against projects facing governance issues. These incidents illustrate the growing scrutiny of market behaviors and governance compliance.

Experts from Kanalcoin suggest that decisive measures like those by Binance could deter market manipulation and reinforce industry standards. The ongoing review is expected to promote accountability and strategic governance improvements.