A controversial crypto deal unraveled just 24 hours after a token launch, sparking backlash and raising serious concerns about insider manipulation.
A sudden $38 million liquidation of Movement (MOVE) tokens just one day after their debut has triggered a wave of scrutiny, with investigators zeroing in on a little-known broker called Rentech at the center of the controversy.
The massive sale—totaling 66 million tokens—prompted Binance to freeze associated accounts, and internal documents obtained by CoinDesk have since shed light on what may be a deeper issue of self-dealing. According to those documents, Movement Labs had signed a market-making agreement that quietly handed Rentech broad access to a large share of the token supply.
What’s raised alarm is Rentech’s dual role: not only did it act on behalf of the Movement Foundation, but it also appeared as a subsidiary of Web3Port—the same entity positioned to benefit if MOVE’s market cap surged. Even more suspicious, Rentech’s web domain was registered the same day the contract was finalized.
The agreement allegedly gave Rentech the ability to borrow nearly half of MOVE’s publicly circulating tokens, with clauses enabling Web3Port to offload those tokens for profit if the project’s valuation hit a $5 billion mark.
Movement Labs has since launched an internal probe into the deal, questioning whether it was manipulated into approving terms that heavily favored one side. Co-founder Rushi Manche, who reportedly introduced the arrangement, is also under review.
In a leaked email, a legal advisor for the Movement Foundation bluntly called the arrangement “probably the worst deal” he’d encountered, suggesting it was structured to artificially drive up MOVE’s value ahead of retail distribution.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/this-altcoin-dumped-overnight-now-insiders-are-under-fire/