Movement Labs Ousts Co-Founder, Unveils New Leadership Team
Movement Labs dismissed co-founder Rushi Manche over a controversial deal with a market maker. The project introduced a new leadership team under Move Industries, though the MOVE token still declined.
An internal investigation at the Ethereum L2 project Movement led to the dismissal of one of its co-founders after uncovering an opaque agreement with a market maker.
Consequently, the company announced:
- The termination of Rushi Manche
- The creation of a new division, Move Industries
Despite the structural changes, the price of the native MOVE token continued to fall. At the time of writing, MOVE (listed on WhiteBIT) has dropped more than 16% over the past 24 hours.
Reasons for the Dismissal of Rushi Manche
In December 2024, Rushi Manche arranged a deal with Rentech, where Web3Port received 66 million MOVE tokens (about 5% of the total supply). Within just 24 hours of the transfer, the market maker began offloading a significant portion of these tokens, creating pressure on the illiquid market (valued at approximately $38 million) and causing a rapid price collapse.
Related: MOVE Crashes 22% After Coinbase Delisting, Co-Founder Sidelined
The lack of transparency in the deal sparked complaints from the community and drew the attention of major exchanges. Following an inquiry by the private intelligence firm Groom Lake and an internal audit, Movement Labs announced the temporary suspension of co-founder Rushi Manche, which was later followed by his permanent dismissal.
Honestly, mistakes were made,
Rushi Manche wrote on April 30.
Move Industries Launches with New Leadership
Alongside the news of the co-founder's dismissal, the team announced the formation of Move Industries.
The new leadership will be headed by:
- Torab Torabi, who joined Movement Labs in September 2023
- Will Gaines, who previously oversaw marketing at Movement Labs
In their statement, the company emphasized its commitment to rebuilding trust with users through regular town halls and enhanced partner vetting processes.
The leadership team at Move Industries is moving ahead with key initiatives previously announced, including:
- MoveDrop
- Parthenon
- DeFi Spring
- Major network upgrades
An AMA session is scheduled for Friday, May 9, where users can engage with the new leadership team and ask questions about the upcoming steps.
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