Movement Faces Scrutiny as leaked documents reveal undisclosed agreements promising 10% of MOVE token supply to advisors, intensifying internal conflicts and shaking investor trust. Reported on May 15, 2025, these revelations compound earlier controversies involving market manipulation. This article delves into the agreements, leadership fallout, and the impact on Movement’s standing in the blockchain industry.
Undisclosed Advisor Agreements Exposed
Movement Faces Scrutiny after internal memos, dated February 2023, surfaced, showing Movement Labs pledged up to 10% of MOVE token supply to advisors without informing investors or the community. The agreements, labeled as non-binding memoranda of understanding (MOUs), involved:
- Sam Thapaliya, CEO of Zebec Protocol and an early advisor, was allocated 5% of MOVE token for marketing and market-making, plus an additional 2.5%, totaling 7.5%—worth over $50 million at current prices.
- Vinit Parekh, owner of Digital Incubation Group, secured 2.5% of MOVE token and a $2 million annual fee, tied to 5% of Movement’s fundraising.
These MOUs, while not legally binding, required mutual consent to cancel, raising the threat of lawsuits. The lack of transparency has fueled accusations of governance failures, eroding trust in Movement’s operations.
Internal Conflicts and Market Maker Fallout
Movement Faces Scrutiny as the leaks deepen tensions between co-founders Rushi Manche, recently ousted, and Cooper Scanlon, who stepped down as CEO but remains with the company. Manche claims Scanlon signed the advisor deals, denying personal responsibility. However, Manche also played a role in a controversial market-making deal with Web3Port. This deal triggered a $38 million MOVE token sell-off. As a result, prices crashed and Binance froze several accounts.
The Web3Port deal, involving 5% of MOVE token supply, mirrors the allocation to Thapaliya, suggesting overlapping roles and conflicts of interest. Manche later introduced Rentech, a murky intermediary, to Web3Port for a similar deal involving Kaito AI. He allocated 2.5% of KAITO tokens for the deal. However, the agreement was eventually canceled. These opaque arrangements echo past scandals, like Eclipse, also linked to Thapaliya, raising ethical concerns in the blockchain industry.
Token Delisting and Community Backlash
Movement Faces Scrutiny as Coinbase announced the delisting of MOVE token on May 15, 2025, causing a 50% price drop in a week, with the token hovering around $0.20. Movement responded by restructuring, forming Move Industries under Scanlon’s leadership, but the damage was done. Once hailed as a modular blockchain star, Movement’s reputation has suffered, with community trust waning amid governance issues.
Read more: Binance Removes Market Maker for MOVE
Online discussions reflect frustration, with investors demanding transparency. The broader crypto market, buoyed by a 90-day U.S. tariff delay and stable Fed rates, saw altcoins surge 30–100%, yet MOVE token fell 30% in a month, underscoring its unique struggles. The controversy highlights the critical need for clear governance in the blockchain industry.
Implications for Movement’s Future
7-day price movement of the MOVE token. Screenshot taken May 16, 2025, from CoinMarketCap.
Movement Faces Scrutiny as it grapples with legal and reputational fallout. The undisclosed MOUs, though not yet executed, raise questions about conflicts of interest and accountability. Thapaliya’s potential lawsuit for $50 million in tokens adds pressure, while the Web3Port scandal continues to haunt the project. Movement’s pivot to Move Industries aims to rebuild, but restoring investor confidence will be challenging.
The saga underscores broader challenges in crypto governance, where transparency is vital for survival. As competition intensifies, Movement’s ability to address these issues will determine its place in the blockchain industry. For now, the project remains a cautionary tale of unchecked agreements and fractured leadership.
Conclusion
Movement Faces Scrutiny over secret deals allocating 10% of MOVE token to advisors like Sam Thapaliya, fueling internal rifts and a Coinbase delisting. With prices tanking and trust eroding, Movement’s restructuring as Move Industries faces an uphill battle. The blockchain industry watches closely, as Movement’s missteps highlight the stakes of transparency and governance.
