Internal conflict at the crypto infrastructure firm has it scrambling to find stability
Movement Labs has officially severed ties with co-founder Rushi Manche, following internal conflict over a dubious transaction with a market maker. The crypto infrastructure firm announced the news on May 7, verifying Manche’s exit via an X post, and hinted leadership and governance reforms are in progress.
Movement Labs has terminated Rushi Manche. Movement will continue under different leadership.
Details on leadership changes and a revamped governance structure will be coming soon.
— Movement (@movementlabsxyz) May 7, 2025
The action follows his earlier suspension for brokering a deal between Web3Port and Rentech. In the transaction, Web3Port was permitted to purchase 66 million MOVE tokens—approximately 5% of the token’s supply. Web3Port instantly sold the tokens, according to reports, and brought an immediate downward pressure that wiped out around $38 million in value towards the end of 2024.
Coinbase recently suspended trading of the MOVE token, stating that the project failed to meet its listing standards. While Movement Labs has not made a statement that the delisting was specifically due to the controversy, the timing sent alarm bells to investors.
In response to the upheaval, Movement Labs introduced a new company: Move Industries. The company will now be led by Torab Torabi as CEO and Will Gaines as chief marketing officer. Both were former members of Movement Labs and are assuming the responsibility of leading the new company. The company announced that the change is aimed at restoring trust and refocusing on community values and transparency.
Leadership has promised a new approach, with open town halls and additional in-house controls. The goal is to create a more stable system of governance and project management. The independent investigation continues, led by Groom Lake, an independent intelligence firm.
The cryptocurrency space has increasingly come into the spotlight regarding the influence that market makers have on token behavior. Movement Labs is the latest entity to incur controversy over its accused manipulation. The controversy exemplifies how the world of digital assets is necessitating greater emphasis on governance and responsibility.
