Movement Labs has placed its co-founder, Rushi Manche, on hold while an investigation into alleged market manipulation takes place. The probe centers around one of the company’s former market makers, who allegedly dumped over 66 million MOVE tokens in December, netting roughly $38 million in USDT. This incident triggered alarm bells across the crypto community, prompting Binance to freeze the associated funds and notify Movement Labs and the Movement Foundation. Further scrutiny revealed that Rentech, the entity behind the dumping, was misrepresented as linked to Web3Port. This shell company appears to lack a digital presence. Leaked contracts suggest Rentech controlled over 5% of MOVE’s total supply, with terms allegedly aimed at inflating the token’s price to a $5 billion valuation before executing a planned sell-off. Coinbase swiftly delisted all MOVE trading pairs on May 15th, citing the token’s failure to meet listing standards. This move further eroded market confidence. The token’s price dropped over 20% within 24 hours and currently trades around $0.19. Technical analysis indicates a downtrend since late March, struggling to break above the 20-day moving average near $0.24. Meanwhile, the Relative Strength Index (RSI) stands at 32, suggesting persistent bearish momentum. A spike in trading volume adds to the token’s volatility. The incident highlights the increasing scrutiny of DeFi projects and raises questions about their transparency.