The company Movement Labs has become the subject of a scandal due to the disclosure of information regarding agreements with advisors, which involved receiving up to 10% of MOVE tokens without the knowledge of investors. Journalists from CoinDesk uncovered these machinations, revealing details of the signed memorandums.
This is reported by Business • Media
Among the advisors promised tokens were Zebec Protocol CEO Sam Tapaliya and consultant Vinit Parekh. According to the information obtained, Tapaliya and Parekh received stakes ranging from 2.5% to 5% of the tokens, as well as the right to significant bonuses. One of the memorandums stipulated a payment of up to $2 million per year for one of the advisors.
Agreement Without Legal Force
Movement Labs stated that these agreements did not have mandatory legal force. However, according to insider information, Tapaliya insisted on the company’s obligations and demanded 2.5% of the total token volume. Some company employees even referred to him as a “shadow co-founder” since he often participated in key decisions of the startup.
“When CoinDesk reached out to Tapaliya before publishing the investigation, he denied any financial interest in Movement Labs or Movement Foundation. He also denied involvement in the agreement with Web3Port.”
Criticism and Consequences
Parekh gained control over 2.5% of the tokens and access to extensive bonuses, according to the memorandum. However, he assured that he did not receive payment for his work. It is also known that project co-founder Rushi Manche received 5% of MOVE tokens for marketing purposes, while another agreement provided him with an additional 2.5% of tokens.
In March 2025, following the publication of the investigation, it became clear that these arrangements had been deliberately concealed. In May, Coinbase announced the delisting of MOVE tokens due to violations of standards, leading to a decline in their value by 84% from peak levels in December 2024. Movement Labs co-founder Rushi Manche previously denied allegations of insider trading.