Investigation: The previous abnormal sell-off of 66 million MOVE tokens may be due to the intermediary Rentech's self-trading.

On April 30, according to CoinDesk, the market-making agreement signed by Movement Labs previously led to the control of 66 million MOVE tokens by Rentech, an unknown middleman, and led to a $38 million sell-off of MOVE tokens the next day at TGE, and CEX urgently banned related accounts. According to the internal contract, the middleman, Rentech, appeared in the agreement as both a Movement Foundation agent and a Web3Port subsidiary, playing a dual role in the transaction, and its domain name was registered only on the day the contract was signed. The contract gives Rentech access to a borrowing right for approximately half of MOVE’s public holdings and allows Web3Port to liquidate tokens and share with Rentech when MOVE reaches a $5 billion valuation. Movement said it may have been induced to sign a financial agreement granting excessive control to a single entity, and an investigation is ongoing. Movement is also investigating the involvement of its co-founder, Rushi Manche, who initially forwarded the deal with Rentech to the Movement team and promoted it internally. Pek, a lawyer for the Movement Foundation, has labeled the protocol in an email as “probably the worst protocol he’s ever seen,” noting that the protocol has a motive to sell tokens to retail investors after driving up the price of MOVE. Despite internal opposition, the executives, legal counsel and team of consultants who brokered the agreement are now under scrutiny.