Movement Labs and Movement Network Under Review Following Market Maker Irregularities
Movement Labs and Movement Network are conducting a review of a market maker that was found to have irregularities last month. Binance has removed an unnamed market maker due to “improper conduct” associated with the MOVE token. According to leaked internal Slack messages from Movement Labs, the company and its foundation have initiated an internal investigation into the market maker.
When contacted by Blockworks, a spokesperson for Movement confirmed that a third-party review is underway. Internal Slack messages viewed by Blockworks revealed that Movement’s co-founder, Cooper Scanlon, is still navigating the recent events, and no conclusions have been reached yet.
The spokesperson for Movement Labs stated in a message to Blockworks: “The Movement Network Foundation is conducting a third-party review regarding the recent irregular actions of the market maker. This is the best course of action to ensure complete transparency and accountability. It is inappropriate to speculate on the outcomes of the review or any possible actions that may be taken, and the name of the third party involved in the investigation has not been disclosed. During the internal review, Movement will continue to operate normally.”
Movement Labs Co-Founder on Temporary Leave
Multiple sources revealed to Blockworks that Movement Labs co-founder Rushi Manche has temporarily left the company, though the exact duration is unclear. One source mentioned that the announcement of Manche’s “temporary leave” was made during a company meeting. Insiders disclosed that the company held an in-person meeting in San Francisco last week, but Manche did not attend.
Manche told Blockworks that he is “still with” Movement Labs, but neither Manche nor Movement Labs specifically addressed whether he is on leave.
Co-Founder’s Whereabouts Uncertain, Still Active on Community Posts
The reasons and duration of Manche’s leave have not been clearly disclosed. One source indicated that employees noticed Manche’s profile was not present in the company’s internal Slack. However, Manche’s Slack account mysteriously reappeared before the end of Monday. Manche stated to Blockworks that he is still using Slack and has been engaged in conference calls throughout the week.
On the afternoon of this past Monday, the same day the news of Manche’s “vacation” was announced internally, he promoted via X that he and co-founder Cooper Scanlon are conducting weekly system sync updates with developers.
Binance has not responded to Blockworks’ request for comments regarding the irregularities of the market maker. Cryptocurrency investigator ZachXBT was informed that the market maker project is related to Web3Port, but Movement declined to disclose the name of the market maker at that time.
According to Blockworks’ investigation, Web3Port has interacted with Movement Labs’ social media posts over the past few months. (Disclosure: Jason Yanowitz, co-founder of Blockworks, is an angel investor in Movement Labs.)
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