Movement Labs and Movement Network Foundation have officially launched an internal investigation into market maker misconduct related to their native token MOVE.
The investigation is based on allegations that have shaken the project's credibility and weakened investor confidence.
Movement Labs Launches Investigation into MOVE Token Manipulation
The ongoing investigation, supported by a third-party review, began after Binance's recent decision to ban unnamed market makers associated with MOVE.
BeInCrypto reported that Binance discovered a market maker who quietly dumped 66 million MOVE tokens worth approximately $38 million shortly after listing.
This triggered a sharp sell-off, causing MOVE's price to drop below $0.30 and record a new low.
Movement Labs issued a Slack communication to the entire company on Tuesday, stating they are conducting an internal investigation "stemming from recent events".
They also explained that the Movement Network Foundation has commissioned a third-party audit to investigate what went wrong.
"This is a standard best practice to ensure full transparency and accountability." – A spokesperson quoted by Blockworks, refusing to speculate on potential consequences or penalties.
The investigation is concurrent with the temporary leave of Movement co-founder Rushi Manche, which was announced in an internal all-hands meeting on Monday, according to sources. Manche was absent from a company external event in San Francisco but denied reports of his resignation.
"Still at Movement. Couldn't attend company external events as I was attending Web3Festival in Asia." – Manche said on X, countering claims of extended leave.
Manche also responded to speculation about his status on Slack, stating he remains actively involved and participating in weekly ecosystem meetings. Sources noted his Slack profile was temporarily deactivated last week but restored by Monday evening.
Despite the confusion, co-founder Cooper Scanlon continues to lead operations, assuring employees and the community that operations remain normal.
With MOVE's price declining and community trust weakening, Movement Labs stands at a crossroads. While the third-party investigation may help restore trust, questions remain about internal controls, liquidity partner verification, and the future of the MOVE ecosystem.
Binance Crackdown…Web3Port Connection
While Binance did not name the specific entity, on-chain investigator ZachXBT pointed to a connection with Web3Port, a company that has previously interacted with Movement Labs' social and community channels.
This incident adds to the list of suspicious practices involving cryptocurrency market makers, raising concerns about insider privileges, token dumping, and undisclosed conflicts of interest.
BeInCrypto recently analyzed whether market makers cause cryptocurrency confusion. The report highlighted that lack of transparency and regulatory oversight can allow some market makers to abuse their roles, potentially harming retail investors.
Binance has also recently banned other market makers due to misconduct related to GPS and SHELL tokens. One entity behind these activities was reportedly using shell companies to hide involvement in multiple suspicious listings, further reflecting how widespread the issue might be.
