It has been reported that the co-founder of Movement has temporarily taken a leave of absence amid suspicions of market maker irregularities. The foundation stated that it has initiated a third-party investigation into the related matter.
According to TheBlock on the 15th (local time), Movement Labs co-founder Rushi Manche is known to have gone on temporary leave amid recent project controversies. According to reports, he was absent from a recent off-site meeting and his Slack account had been inactive for several days. Afterward, the account was reactivated, and Manche indirectly indicated that he is still active as a co-founder by posting photos from a recent event.
The Movement Network Foundation announced that it has initiated a third-party investigation into market maker irregular transactions while rumors of Manche's leave were circulating. This is connected to an incident in March when Binance expelled a market maker from its platform related to a large-scale sell-off of MOVE Token. At that time, the market maker was found to have sold approximately $38 million worth of MOVE Token without buy orders, and Binance immediately notified the foundation and froze some assets.
Subsequently, the foundation stated in a statement that it was unaware of these trading activities until notified by Binance for investigation. The foundation announced that to resolve the issue and restore ecosystem trust, it is conducting a $38 million Tether buyback program and purchasing MOVE Token for long-term purposes and liquidity recovery.
Movement is using the 'Move' programming language, a remnant of the Diem stablecoin project developed by Meta, and is not maintaining a consistent stance on being classified as a Layer 2 while based on Ethereum security.
Movement has experienced several communication crises besides this incident. In January, an insider trading controversy arose when World Liberty Financial, connected to Trump's side, was found to have pre-purchased MOVE Token just before mainnet launch, and the controversy was compounded by rumors of collaboration with Elon Musk.
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