MOVE Token Price Plummets 34% as Movement Labs Cuts Ties with Co-Founder and Announces New Leadership

TLDRMovement Labs has terminated co-founder Rushi Manche following market maker scandal and undisclosed token dealsThe company has rebranded as Move Industries with Torab Torabi as new CEOCo-founder Cooper Scanlon voluntarily stepped down from CEO positionMOVE token has plummeted over 34% in the past week, trading at $0.16Coinbase delisted the MOVE token amid controversy over secret agreements and hidden advisorsMovement Labs has terminated co-founder Rushi Manche and rebranded itself as Move Industries following a market maker scandal that has sent its token price tumbling. The blockchain protocol announced the leadership changes on May 7, 2025, as part of a broader restructuring effort.Movement Labs has terminated Rushi Manche. Movement will continue under different leadership.Details on leadership changes and a revamped governance structure will be coming soon.— Movement (@movementlabsxyz) May 7, 2025The termination comes after Manche was suspended earlier this month when allegations surfaced regarding improper dealings with a market maker called Rentech. These allegations eventually led to Coinbase delisting the MOVE token and suspending all related trading pairs.According to the company’s official announcement, Movement will continue under a new leadership structure. Torab Torabi has been appointed as CEO and ecosystem architect, while Will Gaines will serve as President and Chief Marketing Officer.Former co-founder and CEO Cooper Scanlon has voluntarily stepped down from his position as part of the restructuring. The protocol described these changes as “the beginning of an exciting new chapter for the Movement.”Market Reaction and Token PerformanceThe MOVE token has taken a heavy hit since the controversy began. At press time, MOVE has dropped nearly 10% in the past 24 hours and is trading at approximately $0.16.Movement (MOVE) PriceThe token’s performance over the past week shows an even more drastic decline, with a drop of more than 34%. This downward trend occurred despite the company’s efforts to address the scandal through leadership changes and rebranding.Interestingly, while the price has been falling, the daily trading volume has seen a massive increase of 141.4% compared to the previous trading day. This surge in trading activity suggests investors are actively responding to the news of the restructuring.The price decline began after revelations about improper market making activities. According to reports, Rentech allegedly sold 66 million MOVE tokens for an estimated profit of 38 million USDT in December last year.Binance reported the issue in March, freezing the funds and notifying Movement Foundation and Movement Labs. Since then, the protocol has severed all ties with the market maker and promised a $38 million USDT buyback through a new reserve fund.Governance Restructuring and Future PlansThe newly formed Move Industries has pledged to focus on technology and community as its primary guiding principles. The company has promised more transparent town halls and improved vetting and verification systems moving forward.“This next chapter will ensure we continue building world-class infrastructure, world-class businesses and a world-class movement,” said Will Gaines in an official press release.The controversy surrounding Movement Labs deepened after a CoinDesk report exposed secret agreements between Movement-linked entities and market makers during the project’s token launch. The report revealed shadow advisors, hidden payment flows, and undisclosed token allocations related to the MOVE token’s debut.Internal documents and investor correspondence reviewed by CoinDesk directly tied Manche to these arrangements. This revelation increased community pressure regarding the company’s behind-the-scenes operations and project governance.At the time of Manche’s suspension, the protocol was undergoing investigations from third-party reviewer Groom Lake “regarding organizational governance and recent incidents involving a market maker.”The rebranding to Move Industries appears to be part of the company’s strategy to distance itself from the controversy. Torabi has vowed to fully commit to improving the ecosystem, strengthening the community, and supporting projects built on the network.The token was delisted from Coinbase on May 2, shortly after Manche’s initial suspension. The exchange’s decision came in response to mounting community concerns about the project’s governance structure and operational transparency.The MOVE token price dropped 8.5% in the 24 hours following Manche’s termination announcement, contributing to its overall 35% decline over the past week.The post MOVE Token Price Plummets 34% as Movement Labs Cuts Ties with Co-Founder and Announces New Leadership appeared first on CoinCentral.