Movement Labs has terminated its co-founder, Rushi Manche, following allegations of market manipulation involving the MOVE token. Manche’s removal follows a suspension triggered by a third-party review conducted by Groom Lake that is investigating organizational governance and recent events related to the market maker Web3Port. This decision resulted in wider leadership changes within the company. The market-making scandal triggered a sell-off of 66 million MOVE tokens by Web3Port, causing $38 million in USDT price pressure and leading to Binance’s expulsion of the market maker. Coinbase suspended the MOVE token as a result of the associated controversy, impacting investor confidence. Notably, up to 78% of new token listings since April 2024 have faced similar challenges, sparking discussions regarding the need for stricter oversight on market makers to prevent such occurrences in the future.