Movement Labs has suspended its co-founder, Rushi Manche, amid controversies surrounding a market maker deal he facilitated. The announcement, made on May 2, highlighted that the decision was influenced by ongoing events, including Coinbase's suspension of MOVE trading. This suspension follows a third-party review by the Movement Network Foundation into an agreement arranged by Manche with Rentech, which collaborated with market maker Web3Port. Reports indicate that Web3Port sold 66 million MOVE, approximately 5% of the total supply, leading to a significant $38 million decrease in price back in December 2024. The investigation into the matter is being conducted by the intelligence firm Groom Lake, which has not yet responded to inquiries. The involvement of market makers in cryptocurrency has been contentious, with recent reports illustrating significant malpractice including wash trading and market manipulation across various projects. These practices have raised red flags within the industry, highlighting the potential risks associated with market makers in token launches and trading.

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