The ongoing investigation into the sudden sell-off of 66 million Movement (MOVE) coins has raised serious concerns about potential self-dealing involving a shadowy broker known as Rentech.
The controversy erupted after the coins were sold for $38 million just one day after the project’s token creation event (TGE), prompting Binance to immediately freeze the accounts involved.
According to documents disclosed by CoinDesk, the suspicious transaction stems from a market-making agreement previously signed by Movement Labs. The internal agreement allegedly gave a then-unknown entity, Rentech, significant control over MOVE coins. Notably, Rentech appears in the agreement as both a representative of the Movement Foundation and a subsidiary of Web3Port, indicating a conflict of interest. Notably, Rentech’s domain name was registered the same day the agreement was completed.
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The contract reportedly allowed Rentech to borrow around half of MOVE’s publicly traded coins. In addition, it allowed Web3Port to liquidate the coins and share the profits with Rentech if MOVE’s value reached $5 billion.
Movement Labs acknowledged the situation and is actively investigating whether it was misled into signing a financial deal that disproportionately empowered one party. The organization is also reviewing the role of its co-founder Rushi Manche, who initially introduced and promoted the deal internally.
A Movement Foundation attorney, identified only as Pek, described the deal in a newly leaked email as “probably the worst deal he’s ever seen.” The attorney also warned that the structure appeared designed to inflate the price of MOVE before selling coins to individual investors.
*This is not investment advice.
Continue Reading: Scandal in this Altcoin: Allegations of Price Manipulation
