Exclusive disclosure of court documents! Former Movement founder Rushi officially filed a civil lawsuit against MVMT Labs

A court document revealed that former Movement founder Rushi Manche (full name Rushikesh Manche) has filed a lawsuit against MVMT LABS, which operates Movement. The case was reportedly submitted to the Delaware Court of Chancery on July 9, 2025, with plaintiff Rushikesh Manche bringing a civil lawsuit against defendant MVMT Labs, to be presided over by Vice Chancellor Judge Paul A. Fioravanti Jr.

Rushi Accused by CoinDesk of Colluding with Market Makers

The lawsuit stems from a major governance issue at Movement Labs, with previous reports alleging that Manche colluded with market makers Web3Port and intermediary Rentech, who could liquidate tokens if Movement's FDV exceeded $5 billion, splitting the sale profits 50/50 with the Movement Foundation. This means that market makers, who should have provided liquidity neutrally, were actually encouraged to drive up token prices before selling.

(Movement Labs Quickly Cuts Ties with Co-Founder, MOVE Token Insider Trading Triggers Major Reshuffle)

This arrangement not only allowed market makers to profit but also gave the Movement Foundation a share. They allocated 5% of the total token supply to a single market maker, which is a massive amount compared to the circulating supply (less than 10%). The day after listing, they sold MOVE tokens worth $38 million, resulting in Binance freezing related accounts. Rushi was accused of colluding with the market maker and was consequently removed. Currently, Movement is managed by Move Industries, with the former BD head Torab serving as CEO and marketing head Will as president.

(MOVE Crashes Immediately After Listing! CoinDesk Exposes Market Makers Cutting Profits, Movement Claims to be the Victim)

Rushi Reposts Cooper's Contract Signature, Hoping to Prove His Innocence

Notably, the circulating version seems to suggest that another co-founder, Cooper, was the one who signed the contract, with Rushi himself reposting the post, indicating he is merely an innocent scapegoat.

The prediction platform BRKT on Movement has also seized the controversy, launching a prediction market for the Rushi Manche vs MVMT Labs case, asking who the court will ultimately believe.