Movement Labs Faces $50M Lawsuit, Insider Token Allocations, and Coinbase Suspension Over MOVE Token Dumping Scandal
Movement Labs, the issuer of MOVE token and backed by World Liberty Financial, is embroiled in a major controversy involving undisclosed insider token allocations and internal conflict. Leaked documents and internal memos revealed that up to 10% of the MOVE token supply was secretly promised to early advisers, including Sam Thapaliya and Vinit Parekh, before the public launch. These arrangements were not disclosed to investors, raising concerns of transparency and governance. Allegations that advisers engaged in token dumping triggered a sharp price collapse of more than 80% since launch and a subsequent 50% drop amid the scandal. Internal disputes escalated, leading to the dismissal of co-founder Rushi Manche and increased legal friction with advisors seeking payments or contract enforcement. The controversy has also unveiled questionable deals with Chinese market makers and intensified internal rifts, eroding investor confidence. As a result, MOVE trading was suspended by Coinbase, with the token bottoming out near $0.15 and recently trading around $0.20. This event underscores the risks of poor transparency, governance failures, and market manipulation in new altcoin projects, serving as a critical warning for crypto traders regarding insider activity and potential token dumping.
Bearish
This news has a bearish impact on the MOVE token. The exposure of undisclosed insider token allocations, allegations of adviser-driven token dumping, and escalating internal conflicts have triggered a major loss of investor confidence. The rapid decline of over 80% in MOVE’s price and the suspension of trading on Coinbase signal reduced market demand and increased risk perception among traders. Historical cases show that transparency failures, insider dealing, and market manipulation often result in sustained price pressure, increased volatility, and capital outflows. Short-term sentiment is likely to remain negative as legal disputes continue and reputational concerns persist, while long-term recovery depends on improved governance and transparency that may take significant time to restore. Crypto traders should be cautious of further downside and thin liquidity.