Movement Labs ends co-founder Rushi some in the middle of the token-dump scandal

Movement Labs ended the co-founder Rushi some after the increasing examination because of his participation in a controversial token deal, which led to a massive withdrawal of Move token and a subsequent price crash. The decision published on May 7, 2025 follows a week with internal investigations and escalating counter -reactions of the community.

At the center of the scandal there is an agreement in December 2024 with a market for marked company called Rentech, which received 66 million moving token token 5% of the total offer of the token. Studies showed that Rentech quickly liquidated its allocation shortly after Move's public start to achieve 38 million US dollars of $ 38 million and to influence market trust.

Better were disturbing knowledge that Rentech worked both as a subsidiary of Web3port and as an agent of the Movement Foundation. These overlapping roles raised red flags about potential self -help and non -mentioned affiliations. Internal communication and documents indicate that some were closely involved in the negotiation and approval of the deal, despite the legal warnings of the risks that contained such agreements to token owners and the broader ecosystem.

Allegations of self -help and regulatory examination

The abrupt drop in price from Move Token drew attention from large stock exchanges and led to fast measures. Coinbase announced that it would suspend the move and claims that the token no longer fulfilled its list standards. The move had dropped by 8.5% within 24 hours, and the token had lost more than 35% of its value by the end of the week.

In the midst of the growing outrage of the community, the Labs movement used some on May 2 and introduced the review company of third-party providers Groom Lake to carry out a comprehensive governance audit. The results of this exam were not fully announced, but the project was quickly acted and announced the official termination of some five days later.

Leadership and strategic renaming

After the scandal, Movement Labs renamed Move Industries to reset its public image and to restore the trust between users and investors. Together with the Rebrand, the company has presented a new management team that names Torab Torabi as CEO and wants Gaines as President and Chief Marketing Officer.

According to the new leadership, the company plans to strengthen internal governance and compliance framework conditions, increase transparency in relation to the token economy and to focus on the core mission, to build scalable, safe blockchain infrastructures.

With a view to the future, Move Industries is driving a new roadmap. The most important initiatives include Moverop, a token -Incentive program; The Parthenon upgrade focused on the protocol scalability; And Defi Spring, a new suite of decentralized financial tools that aim to expand the ecosystem of the platform. The team has planned a community that asked me about something (AMA) for Friday and issues the next steps.

The failure of this incident is a strong memory of the critical need for transparency, solid government and accountability in the web3 area, in which trust and integrity are as fundamental as the code itself.