Movement Labs and the Movement Network Foundation have launched a formal internal investigation into market maker misconduct surrounding their native token, MOVE.
It follows allegations that have rocked the project’s credibility and shaken investor confidence.
Movement Labs Launches Investigation into MOVE Token Manipulation
The investigation, now underway with support from a third-party review, follows Binance’s recent decision to ban an unnamed market maker associated with MOVE.
BeInCrypto reported the incident, citing the Binance exchange discovering the market maker had quietly dumped 66 million MOVE tokens worth approximately $38 million shortly after listing.
The fallout triggered a sharp sell-off, pushing MOVE’s price below $0.30, marking new lows for the token.
Reportedly, Movement Labs issued a company-wide Slack communication on Tuesday stating that it is “conducting an internal investigation stemming from recent events.”
Further, it articulated that the Movement Network Foundation has commissioned a third-party audit to explore what went wrong.
“This is standard best practice to ensure full transparency and accountability,” Blockworks reported, citing a spokesperson who declined to speculate on potential outcomes or penalties.
The investigation has coincided with Movement co-founder Rushi Manche’s temporary leave of absence, which sources confirmed was announced during an internal all-hands meeting on Monday. While Manche was notably absent from a recent company offsite in San Francisco, he has disputed reports of his departure.
“Very much still at Movement. Missed company offsite because I was in Asia for Web3Festival,” Manche said on X, refuting claims of an extended leave.
Manche also responded to speculation about his status on Slack, stating that he remains active and participates in weekly ecosystem calls. His Slack profile, which sources said was temporarily deactivated late last week, appeared to be reinstated by Monday evening.
Despite the confusion, co-founder Cooper Scanlon continues to lead operational matters, assuring employees and the community that operations are normal.
As MOVE’s price bleeds and community trust erodes, Movement Labs faces a crossroads. The third-party investigation may help rebuild confidence, but questions remain about internal controls, liquidity partner vetting, and the future of the MOVE ecosystem.
Binance Crackdown and the Web3Port Connection
While Binance did not name the entity, on-chain investigator ZachXBT pointed to possible ties to Web3Port. The firm had previously interacted with Movement Labs’ social media and community channels.
This case adds to a growing list of questionable practices involving market makers in crypto, raising concerns about insider privileges, token dumping, and undisclosed conflicts of interest.
BeInCrypto recently analyzed whether market makers are creating crypto chaos. The report highlighted how the lack of transparency and regulatory oversight allows some market makers to exploit their roles, often at the expense of retail investors.
Moreover, Binance has recently banned other market makers over misconduct related to GPS and SHELL tokens. As it happened, one entity behind those abuses allegedly operated using shell companies, masking its involvement in multiple suspicious listings. This further reflects how widespread the issue may be.
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