tl;dr
Movement Labs and the Movement Network Foundation have launched an internal investigation, supported by a third-party audit, into alleged market maker misconduct involving their native token, MOVE. The probe follows Binance's ban of an unnamed market maker that reportedly dumped 66 million MOVE toke...
Movement Labs and the Movement Network Foundation have initiated an internal investigation into alleged market maker misconduct involving their native token, MOVE, following Binance's ban of a market maker for dumping 66 million MOVE tokens worth approximately $38 million shortly after listing. This large-scale sell-off triggered a sharp price decline, pushing MOVE’s value below $0.30 and shaking investor confidence.
The investigation includes a third-party audit aimed at ensuring full transparency and accountability amid these troubling events. Movement Labs communicated internally about the probe and commissioned the audit as a standard best practice response. Movement co-founder Rushi Manche has disputed reports of taking an extended leave of absence, affirming his ongoing involvement despite missing a company offsite due to travel. Meanwhile, co-founder Cooper Scanlon continues to lead operational matters, reassuring stakeholders that operations remain stable.
On-chain analysis reveals possible ties between the banned market maker and Web3Port, a firm previously engaged with Movement Labs' social media channels. This connection highlights broader concerns about market maker abuses such as insider privileges, token dumping, and undisclosed conflicts of interest within the cryptocurrency industry, especially given the absence of regulatory oversight.
Binance's crackdown on the involved market maker follows similar bans on other market makers accused of misconduct with GPS and SHELL tokens. Investigations into these entities uncovered operations run through shell companies, masking true involvement and increasing the opacity of crypto market practices.
The ongoing investigation by Movement Labs aims to restore community trust and address the internal control weaknesses exposed by these events. The situation underscores widespread issues within the crypto ecosystem related to market maker behavior and the urgent need for improved transparency and regulatory measures.