Movement Lab and Movement Network Foundation have launched a formal internal investigation into market makers’ fraud over native tokens, Move.
This follows allegations that have shaken the credibility of the project and shaken the trust of investors.
Movement Lab begins research into mobile token operations
The ongoing investigation, now with support from third-party reviews, follows Binance’s recent decision to ban unnamed market makers associated with the movement.
Beincrypto reported the incident and cited Binance Exchange, which discovered that the market maker quietly dumped $66 million worth of mobile tokens, worth around $38 million, immediately after listing.
Fallout caused a sharp sell, pushing Move’s price to under $0.30, marking a new low in the token.
Movement price performance. Source: Beincrypto
Movement Labs reportedly issued company-wide Slack communications on Tuesday, saying it was “conducting an internal investigation resulting from a recent event.”
Additionally, it made clear that Movement Network Foundation had asked for a third-party audit to investigate what went wrong.
“This is a standard best practice to ensure complete transparency and accountability,” Blockworks reported, citing a spokesman who refused to speculate on potential consequences or penalties.
The investigation coincides with a temporary leave of the movement’s co-founder Rushi Manche, confirming sources announced at the internal All-Hand meeting on Monday. Manche was particularly absent from the recent company offsite in San Francisco, but he disputes his report of departure.
“I was in Asia for Web3Festival so I’m still on the move.
Manche also responded to speculation about his position in Slack, saying he is active and participates in weekly ecosystem calls. Sources said his slack profile, which he said was temporarily deactivated late last week, appeared to have revived by Monday evening.
Despite the confusion, co-founder Cooper Scanlon continues to lead operational issues, ensuring that operations are normal for employees and communities.
As Move prices bleed and community trust erodes, Movement Labs face a crossroads. Third-party investigations can help rebuild trust, but questions remain about internal controls, liquidity partner reviews, and the future of the mobile ecosystem.
Binance crackdown and Web3port connection
Binance did not name the entities, but on-chain investigator ZachxBT pointed out the possible connection to Web3port. The company previously interacted with Movement Labs’ social media and community channels.
This case is added to the growing list of suspicious practices involving crypto market makers, raising concerns about insider privilege, token dumping and private conflicts of interest.
Recent beincrypto anusYzed whether market makers are creating crypto chaos. The report highlighted how some market makers can often harness their roles at the expense of retail investors due to lack of transparency and regulatory oversight.
Additionally, Binance has recently banned other market makers on fraudulent activities related to GPS and shell tokens. As it happened, the one entity behind these abuses, which are said to be operated using shell companies, is involved in multiple suspicious lists. This further reflects how widespread the problem is.
