Movement Labs terminates co-founder Rushi Manche, launches new firm
Movement Labs terminated co-founder Rushi Manche due to controversies surrounding a market maker deal he brokered. The announcement was made on May 7, following his earlier suspension. Movement Labs plans to continue under new leadership and hinted at governance changes. The firm also launched Move Industries, appointing Torab Torabi as CEO and Will Gaines as CMO, emphasizing a return to community-focused values and improved governance. The termination is linked to an investigation into Manche's agreement with Rentech, which involved market maker Web3Port. This deal resulted in the sale of 66 million MOVE tokens, causing significant price pressure. A private intelligence firm is conducting the investigation. Market makers can significantly impact cryptocurrency projects, with recent reports indicating that many new token listings have been poorly managed. Allegations of market manipulation and wash trading have surfaced against various market makers, prompting regulatory scrutiny and legal actions against some firms for fraudulent practices.
