What is MOVE token scandal?

Movement is a new Layer 2 blockchain ecosystem designed to bring Move-based smart contract programming (originally developed for Facebook's Diem project) into Ethereum.

The MOVE token scandal centers around a market manipulation incident involving Movement Labs' native cryptocurrency, MOVE.

This event led to a sharp decline in the token's value and raised serious concerns about transparency and governance within the project.​

What Happened?

On December 9, 2024, shortly after MOVE was listed on major exchanges like Binance and Upbit, 66 million MOVE tokens, valued at around $38 million, were sold off in a single day.

This massive sell-off caused the token's price to plummet to an all-time low of $0.219, sparking allegations of insider trading and market manipulation. ​

As of May 1, 2025, MOVE was trading at $0.249 and ranked 99^th largest crypto by market cap with $624 million in market cap.

The Role of Rentech and Web3Port

The Movement Foundation had entered into a market-making agreement with Web3Port, a Chinese firm linked to Donald Trump's World Liberty Financial (WLFI).

However, the tokens were routed through an obscure intermediary named Rentech, which was mistakenly believed to be a subsidiary of Web3Port.

This arrangement granted Rentech control over 5% of MOVE's total supply, allowing them significant influence over the token's market. ​

The contract included provisions that incentivized Rentech to inflate MOVE's market capitalization to $5 billion, enabling them to sell off their holdings for substantial profits.

This structure has been criticized by industry experts as dangerous and unethical, as it encouraged artificial price inflation followed by a dump on retail investors. ​

Internal Fallout and Investigations

The scandal led to internal turmoil within Movement Labs.

Co-founder Rushi Manche temporarily stepped back from his role amid the controversy, while co-founder Cooper Scanlon took over operational leadership.

The Movement Network Foundation initiated a third-party investigation to examine the circumstances surrounding the deal and to hold those responsible accountable. ​

Binance Ban and Token Buyback

In response to the incident, Binance banned the market-making account associated with Rentech.

To restore investor confidence, the Movement Foundation announced a $38 million buyback program to repurchase MOVE tokens from the open market.

The repurchased tokens will be placed into a strategic reserve to stabilize the token's value and demonstrate the project's commitment to rectifying the situation.

Key Takeaways

• Token Dump: 66 million MOVE tokens were sold off, causing a significant price drop.
• Questionable Agreements: The deal with Rentech included incentives for price manipulation.
• Internal Struggles: Leadership changes and investigations ensued within Movement Labs.
• Recovery Efforts: A $38 million buyback program was launched to stabilize the token

The MOVE token scandal serves as a cautionary tale about the importance of transparency, proper due diligence, and ethical practices in the cryptocurrency industry.