Movement Labs has been exposed to have allocated up to 10% of tokens to two "Shadow Advisors."

BlockBeats News, May 15th, according to CoinDesk, two business memos show that Movement Labs signed agreements with two "shadow advisors," committing to provide up to 10% of the MOVE token supply (worth over $50 million). Advisor Sam Thapaliya claims the agreement has not been voided and is pursuing legal action to recover the tokens representing 2.5% of the total supply.

Previously, Movement Labs' market-making agreement with Web3Port was reported to have induced a sell-off, leading to a sharp decline in the token's price post TGE. Co-founder Rushi Manche has been fired this month, and Coinbase has also suspended MOVE token trading. Movement Labs recently announced a rebrand to Move Industries, with a new leadership team in place, composed of early Movement Labs members, including two core founders: Torab as CEO and Ecosystem Architect; livingwithwill as President and Head of Marketing.

Earlier BlockBeats reported that 66 million MOVE tokens were unusually sold off, possibly due to self-trading by intermediary Rentech.