MOVE Token Sell-Off: 66 Million Tokens Liquidated, Binance Freezes Accounts

An investigation has revealed that 66 million MOVE tokens were anomalously sold off, with the intermediary Rentech playing a significant role in the transaction. The liquidity agreement signed by Movement Labs allowed Rentech to control a substantial portion of the MOVE tokens, leading to a $38 million sell-off the day after the token generation event (TGE). This prompted Binance to freeze the related accounts.

Internal contracts indicate that Rentech acted as both an agent of the Movement Foundation and a subsidiary of Web3Port, effectively playing a dual role in the transaction. The domain name for Rentech was registered on the same day the contract was signed. This agreement granted Rentech lending rights to approximately half of the publicly held MOVE supply. Additionally, it allowed Web3Port to liquidate the tokens and share the proceeds with Rentech once the MOVE valuation reached $5 billion.

Movement Labs has acknowledged that it may have been induced to sign a financial agreement that granted excessive control to a single entity. The company is currently conducting an internal investigation into the matter. The involvement of Movement Labs' co-founder, Rushi Manche, is also under scrutiny. Manche initially forwarded the transaction with Rentech to the Movement team and promoted it internally. Movement Foundation lawyer Pek described the agreement as "perhaps the worst agreement he has ever seen," highlighting its motivation to artificially inflate the MOVE token price and then sell the tokens to retail investors. Despite internal opposition, the executives, legal advisors, and advisory team who facilitated the agreement are currently under review.