This Altcoin Scandal: They Distributed Tokens with Secret Agreements! The Price is Reacting

It has been revealed that Movement Labs, a cryptocurrency initiative funded by World Liberty Financial supported by Donald Trump and recently in the spotlight due to scandals, secretly allocated a significant portion of MOVE tokens to some early-stage advisors.

The leaked internal documents raised serious questions about the power dynamics within the company regarding these agreements hidden from investors.

It has been learned that before the token was launched, Movement Labs allocated a large portion of the MOVE supply to a small number of advisors, and these agreements were not disclosed to investors. In two separate business notes written by the founders in 2023, it appears that a single advisor was offered tokens worth approximately 2 million dollars annually. Although the company claims that these agreements are non-binding and were made for exploratory purposes, the existence of the documents reveals the chaos in the company’s internal operations.

Following the recent developments, co-founder Rushi Manche was fired from the company this month, while another co-founder, Cooper Scanlon, stepped down as CEO but continued to stay with the company. In a statement, Manche said, "When we founded the company, I was managing the engineering team as CTO. I had left most of the business deals to Cooper."

Among the names mentioned in the leaked documents are Zebec Protocol CEO Sam Thapaliya and Vinit Parekh. Both individuals played a behind-the-scenes role in the company's early strategic decisions. According to insider sources, these two have been granted access to up to 10% of the total MOVE supply through signed confidentiality agreements.

To Thapaliya, 5% of the MOVE supply is "loaned" for market making and marketing activities, while an additional 2.5% share was allocated under another agreement. The current value of this amount exceeds 50 million dollars. While Movement Labs claims that these agreements are not binding, Thapaliya rejected this claim and stated that he would seek legal action: "These agreements have never been invalidated. I will legally claim my 2.5% token rights."