Movement Labs has suspended co-founder Rushi Manche amid a serious governance probe following the controversial dumping of 66 million MOVE tokens. The incident stemmed from a deal with a firm named Rentech, which misrepresented itself as part of a legitimate trading operation but allegedly dumped its token allocation shortly after the launch, leading to significant market disruptions. Internal documents revealed that Rentech acted both as a representative of Web3Port and as an agent for Movement Labs, raising substantial legal concerns. Despite warnings from legal counsel about the fraught nature of the contract, the deal went ahead, resulting in Binance freezing $38 million in profits due to misconduct associated with the market dump. Following all this, Movement Labs' issued a statement regarding the situation, while Coinbase announced plans to delist the token, causing further panic in the community. A third-party governance audit is underway to assess the situation more thoroughly.

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