Movement Labs Secretly Promised Advisers Millions in Tokens, Leaked Documents Show
Movement Labs, a crypto startup backed by Donald Trump’s World Liberty Financial, faces scrutiny over undisclosed deals granting significant token allocations to early insiders. Internal documents reveal agreements promising substantial portions of the MOVE token supply to advisors Sam Thapaliya and Vinit Parekh, raising concerns about transparency and control.
One agreement allocated Thapaliya, CEO of Zebec Protocol, 5% of MOVE’s supply for marketing and market-making. A second agreement granted him an additional 2.5%, potentially worth over $50 million. While Movement claims these agreements were non-binding, Thapaliya asserts they remain valid and intends to pursue legal action. He was considered a “shadow co-founder,” influencing key decisions, including the controversial deal with Chinese market maker Web3Port. This deal, involving an identical 5% token allocation, resulted in a $38 million token dump and subsequent price crash. Thapaliya initially denied any financial interest in Movement Labs but later confirmed fulfilling contractual obligations.
Another agreement awarded Vinit Parekh’s Digital Incubation Group approximately $2 million annually based on funds raised by Movement Labs. Parekh’s firm also received 2.5% of the MOVE token supply in exchange for strategic consulting. Though both parties claim the agreement was exploratory and no funds exchanged hands, Parekh’s significant involvement in Movement’s operations is confirmed.
The fallout from these revelations has exposed a rift between co-founders Rushi Manche and Cooper Scanlon. Manche, terminated from Movement Labs, implicated Scanlon in approving the deals. Manche’s involvement in facilitating a similar, albeit ultimately terminated, agreement between Web3Port and Kaito further complicates the situation.
These undisclosed agreements exemplify a concerning pattern in the crypto industry, where substantial financial commitments are made behind closed doors, potentially influencing token ecosystems without community knowledge. The lack of transparency raises questions about the ethical implications and potential for manipulation within the crypto space, leading to reputational damage for Movement Labs, including the suspension of MOVE trading on Coinbase. Movement Labs has since announced the creation of Movement Industries, a new entity to serve as the network’s primary developer.
