Movement Labs, the company behind the MOVE token, is conducting an internal investigation regarding a controversial agreement that gave control over 66 million tokens to a shadowy intermediary. The deal triggered a $38 million sell-off and raised serious concerns about price manipulation and insider involvement.
Controversial Market Deal
The incident centers around a contract involving Rentech, a little-known entity that reportedly appeared on both sides of the agreement — once representing the Movement Foundation and once posing as a subsidiary of market-making firm Web3Port. The deal allowed Rentech access to a substantial share of MOVE’s circulating supply shortly after its December 9 market debut.
Initial internal assessments labeled the deal as potentially disastrous. One official described it as "possibly the worst agreement" they had ever seen. The terms included profit-sharing provisions based on inflated token valuations, which experts say created incentives for artificial price inflation followed by a dump onto retail investors.
Binance Ban and Token Fallout
The fallout was swift. Wallets linked to Web3Port liquidated tens of millions in tokens immediately after launch. In response, Binance banned the involved market-making accounts for misconduct. Movement Labs has since launched a token buyback program and initiated a third-party investigation.
Key Figures Analysis
The controversy has fueled tension within Movement’s leadership. Internal communications suggest that Movement Labs co-founder Rushi Manche promoted the Rentech arrangement, while legal counsel YK Pek and other foundation directors initially rejected the deal due to its risky terms. However, a revised version of the agreement was ultimately approved, removing some, but not all, of the problematic provisions.
Movement’s other co-founder, Cooper Scanlon, described the project as a “victim” in this arrangement and has committed to uncovering how the agreement was finalized despite red flags.
Movement Labs has retained Groom Lake, an independent auditing firm, to conduct a comprehensive review of the matter. According to internal messages, the investigation aims to clarify the roles of all parties involved and ensure accountability for what many insiders see as a severe lapse in judgment.
