Movement Labs Market Making Controversy Investigation: Governance Out of Control Behind the Token Big Dump

2025-07-10 18:57:51

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Movement Labs Market Maker Dispute Investigation

Movement Labs is investigating an alleged fraud incident involving a market-making agreement. This agreement transferred control of a large number of MOVE tokens to an obscure intermediary, Rentech, resulting in a massive sell-off the day after the token was launched, triggering a price crash and exchange bans.

Despite multiple internal objections, the senior management of Movement pushed for the signing of this agreement, which carries significant risks. The incident exposes deep-seated issues in the project's governance structure, risk control, and compliance capabilities.

Details of the Controversial Agreement

Rentech has gained control of approximately 66 million MOVE tokens, which account for nearly half of the circulating supply (.
The agreement allows Rentech to sell tokens and share profits when MOVE's fully diluted valuation exceeds 5 billion dollars.
Rentech serves as both the agent for the Movement Foundation and a subsidiary of Web3Port in the agreement.

![CoinDesk Survey: Movement Market Makers Sell-off Scandal, Secret Contracts, Shadow Advisors, and Hidden Intermediaries])https://img-cdn.gateio.im/webp-social/moments-4efa20147f69abea6c95020e4f436702.webp(

Key Figures

Rushi Manche and Cooper Scanlon: Co-founders of Movement Labs
Sam Thapaliya: Founder of Zebec, accused of being the "shadow co-founder" of Movement.
Galen Law-Kun: Founder of Rentech
YK Pek: Legal Advisor of the Movement Foundation

![CoinDesk Survey: Movement market makers sell-off scandal, secret contracts, shadow advisors, and hidden intermediaries])https://img-cdn.gateio.im/webp-social/moments-3b386bd50b1a770a9fcf9d02fbcd430c.webp(

![CoinDesk Survey: Movement Market Makers Sell-Off Scandal, Secret Contracts, Shadow Advisors, and Hidden Intermediaries])https://img-cdn.gateio.im/webp-social/moments-852dc8c83a21ab54f42942ba52e4e6f7.webp(

Event Impact

MOVE token faced massive sell-off on the day after its launch, causing a price crash.
Binance banned the involved market-making accounts.
Movement initiates token buyback plan
The project conducted an internal investigation, and multiple parties blamed each other.
The crypto industry is once again focusing on project governance and transparency issues.

The incident reveals how crypto projects can be exploited as profit-making tools by a minority in an unregulated environment. The Movement case highlights deep-seated issues such as the failure of project governance mechanisms and lack of risk control, which may impact its long-term development.

MOVE-3.96%

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