The Movement Exposed for Secret Promise scandal has intensified internal conflicts at Movement Labs, with leaked documents revealing undisclosed agreements to allocate 10% of MOVE token supply to advisors. Reported on May 15, 2025, these revelations have fueled distrust and led to Coinbase delisting the token. This article explores the scandal, its impact on leadership, and the future of the modular blockchain project.
Hidden Deals with Advisors
The Movement Exposed for Secret Promise controversy centers on internal memorandums of understanding (MOUs) uncovered by CoinDesk, dated February 2023. These documents outline covert commitments to distribute MOVE token shares to key advisors without public disclosure to investors or the community.
- Sam Thapaliya, CEO of Zebec Protocol and an unofficial advisor, was promised 5% of MOVE token supply 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, secured 2.5% of MOVE token supply and a $2 million annual fee, tied to a 5% commission on funds raised by Movement.
These MOUs, while non-binding, require mutual consent to cancel, raising potential legal risks. The lack of transparency has sparked accusations of ethical lapses and conflicts of interest within the modular blockchain project.
Internal Strife and Market-Making Fallout
The Movement Exposed for Secret Promise saga has deepened tensions between co-founders Rushi Manche, recently terminated, and Cooper Scanlon, who stepped down as CEO but remains with the company. Manche denies responsibility, claiming Scanlon authorized the advisor deals. However, Manche is also linked to a controversial market-making agreement with Web3Port, blamed for dumping $38 million in MOVE token supply, crashing its price and freezing some Binance user accounts.
The Web3Port deal, involving 5% of token supply, mirrors Thapaliya’s allocation, fueling speculation of overlapping roles. Manche’s introduction of Rentech as an intermediary in a similar deal for Kaito AI, later canceled, further complicates the narrative. These opaque practices echo past CoinDesk investigations into the Eclipse project, also tied to Thapaliya, raising red flags about governance in the modular blockchain space.
Coinbase Delisting and Community Backlash
The Movement Exposed for Secret Promise fallout prompted Coinbase delisting of MOVE token on May 15, 2025, causing a 50% price drop in a week. Currently trading at $0.20, down 30% over the past month, MOVE lags behind a crypto market rebounding 30–100% after U.S. tariff delays and stable Federal Reserve rates. Movement announced a restructuring, forming Movement Industries under Scanlon’s leadership, but the damage to its reputation persists.
Read more: Binance Removes Movement MM Over Market Manipulation
Online discussions reflect community disillusionment, with many questioning the project’s transparency. Once hailed as a rising star in the modular blockchain ecosystem, Movement now faces skepticism about its viability in a competitive landscape where trust is paramount.
Implications for Movement’s Future
7-day price movement of the MOVE token. Screenshot taken May 16, 2025, from CoinMarketCap.
The Movement Exposed for Secret Promise scandal highlights the risks of undisclosed agreements in crypto projects. While no tokens or payments have been distributed under the MOUs, their existence undermines investor confidence. The Coinbase delisting and price crash signal market rejection, and potential lawsuits over the MOUs could further destabilize Movement.
To recover, Movement must prioritize transparency and rebuild community trust. The restructuring into Movement Industries is a step, but addressing governance flaws and clarifying advisor roles are critical. The scandal may also spur tighter regulations for token allocations in the modular blockchain sector, as projects vie for credibility.
Conclusion
The Movement Exposed for Secret Promise controversy, revealing hidden MOVE token deals with advisors, has shaken Movement Labs. With Coinbase delisting, a 50% price drop, and co-founder disputes, the modular blockchain project faces a trust crisis. As the crypto market rebounds, Movement’s path to redemption hinges on transparency and governance reform, lest it lose its place in the crypto ecosystem.
