Movement Rocked by controversy as leaked documents reveal secret deals promising up to 10% of MOVE token supply to advisors, undisclosed to investors or the public. These revelations, reported on May 15, 2025, deepen the turmoil surrounding Movement Labs, a crypto startup backed by Trump’s World Liberty Financial. This article explores the agreements, internal conflicts, and their impact on the crypto startup’s future.
Secret Deals Exposed
Movement Rocked when internal memos, obtained by CoinDesk, surfaced, showing Movement Labs pledged 10% of MOVE token supply to advisors in February 2023. These non-public agreements involved:
- Sam Thapaliya, CEO of Zebec Protocol and an early advisor, was promised 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, was allocated 2.5% of MOVE token and a $2 million annual fee, based on 5% commission from funds Movement raised.
Framed as memoranda of understanding (MOUs), these deals are typically non-binding but include clauses requiring mutual consent for termination, raising legal risks. The lack of transparency has sparked accusations of ethical lapses and conflicts of interest.
Internal Strife and Market-Making Fallout
Movement Rocked by internal divisions, with co-founders Rushi Manche (recently fired) and Cooper Scanlon (stepped down as CEO but still with the company) trading blame. Manche claims Scanlon signed the advisor deals early on, while Scanlon points to Manche’s role in a controversial market-making agreement with Web3Port. This deal, linked to a $38 million MOVE token dump, crashed prices and led to Binance freezing some user accounts.
The Web3Port agreement, allocating 5% of tokens, mirrors the amount promised to Thapaliya, fueling speculation of overlapping roles. 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. These patterns echo past CoinDesk investigations into Sam Thapaliya’s involvement with Eclipse, raising red flags about token distribution practices.
Token Delisting and Community Backlash
Movement faced more turmoil when Coinbase announced it would delist the MOVE token on May 15, 2025. As a result, the token dropped 50% in a week. It hovered around $0.20, marking a 30% monthly decline, according to CoinGecko. In response, Movement Labs restructured its operations. They created Move Industries as the new primary developer. Although Scanlon stayed in a leadership role, he no longer served as CEO.
Read more: Binance Removes Movement MM Over Market Manipulation
Once hailed as a modular blockchain innovator, the crypto startup’s reputation has suffered. Online discussions reflect community distrust, with many questioning Movement’s transparency and governance. The scandal contrasts with a buoyant crypto market, where altcoins surged 30–100% after U.S. tariff delays and stable Fed rates, leaving MOVE token as an outlier.
Implications for Movement’s Future
7-day price movement of the MOVE token. Screenshot taken May 16, 2025, from CoinMarketCap.
Movement Rocked by these disclosures, which highlight risks in undisclosed token allocations. While Movement insists no tokens or payments were transferred, the MOUs’ existence raises concerns about accountability. Sam Thapaliya’s threat to sue for his 2.5% stake, valued at $50 million, adds legal pressure, potentially destabilizing the crypto startup further.
The controversy may prompt stricter oversight of token distribution in the crypto industry, especially for projects tied to high-profile backers like World Liberty Financial. Movement’s pivot to Move Industries aims to restore confidence, but rebuilding trust in a competitive blockchain landscape will be challenging. Failure to address transparency could alienate investors and developers, dimming Movement’s once-promising trajectory.
Conclusion
Movement Rocked by leaked agreements promising 10% of MOVE token to advisors like Sam Thapaliya, exposing governance flaws at the crypto startup. With Coinbase delisting the token and prices plummeting, Movement’s restructuring under Move Industries faces skepticism. As the World Liberty Financial-backed project grapples with internal rifts and community distrust, its future hinges on restoring transparency in the crypto ecosystem.
