Ethereum Layer-2 developer Movement Labs has officially parted ways with co-founder Rushi Manche, following days of mounting backlash over a controversial token sale and fractured relationships with major market makers. The company announced the termination Wednesday on X, stating bluntly: “Movement Labs has terminated Rushi Manche. Movement will continue under different leadership.”
The announcement marked the first step in a sweeping organizational reset. In a follow-up post, the team revealed it would rebrand under a new identity: Move Industries. The move was framed not only as damage control but as a return to crypto’s foundational ideals. “This is about getting back to crypto’s radical roots,” the team wrote, pledging greater transparency and community alignment going forward.
In a public statement, the restructured team committed to a builder-first philosophy, promising tighter internal controls, enhanced stakeholder accountability, and a reworked roadmap. “The mistakes of the past week won’t define us,” the company said.
New Execs Step In as MOVE Fallout Forces Leadership Shakeup
As part of the reorganization, Move Industries has appointed Torab Torabi as Chief Executive Officer and Will Gaines as President and Chief Marketing Officer. Torabi, formerly Director of Business Development at Movement Labs, steps in at a pivotal moment for the project. Gaines, a longtime marketing lead, will now oversee strategic communications as the company works to rebuild its credibility.
The reshuffle comes amid widespread fallout from the botched MOVE token launch. At the core of the crisis was a 66 million token dump—representing 5% of the total supply—executed by market maker Rentech within 24 hours of the token’s debut. Despite internal objections and legal red flags, the deal was reportedly greenlit by Manche, who retained simultaneous leadership roles in both the company and its nonprofit foundation.
The dual involvement raised serious governance concerns, particularly around conflicts of interest and the absence of operational guardrails. The new leadership has pledged to rectify these issues by clearly defining internal boundaries and introducing stronger accountability structures across the board.
MOVE Token Tanks as Binance Freezes Funds, Coinbase Prepares Delisting
The MOVE token has been hit hard in the wake of the controversy. Binance froze $38 million in related funds and banned the implicated market maker from its platform, citing predatory sell pressure and inadequate liquidity commitments. Coinbase, meanwhile, has announced that it will suspend trading of MOVE on May 15 as part of its ongoing asset evaluation protocol.
The response from the market was swift and severe. MOVE dropped to a new all-time low of $0.1579, and is currently trading near $0.16, down 8.5% on the day and roughly 34% over the past week, according to CoinGecko.
Despite the turmoil, Move Industries insists its product roadmap remains intact. The team said that core initiatives—including the MoveDrop airdrop, Parthenon staking suite, DeFi Spring, and upcoming core network upgrades—will proceed as planned. To help reestablish trust, the team has scheduled a community AMA for Friday via its official Telegram channel.
Quick Facts
- Movement Labs has terminated co-founder Rushi Manche following allegations tied to the MOVE token’s mishandled launch.
- The company has rebranded as Move Industries, installing Torab Torabi as CEO and Will Gaines as President and CMO.
- Binance froze $38M in related funds, and Coinbase will suspend MOVE trading on May 15.
- MOVE is down 34% for the week, with the team pledging stronger governance and transparency.
