Movement Labs Co-founder Cooper Scanlon Suspended Over Market Manipulation Allegations
Leaked messages raise ethical concerns about token launch strategies and insider market making within the Move-based blockchain project.
Movement Labs, a leading development firm in the Move blockchain ecosystem, has suspended co-founder Cooper Scanlon after leaked Telegram messages suggested inappropriate coordination with market makers around token pricing and launch manipulation.
The controversy began when screenshots circulated across X (formerly Twitter), allegedly showing Scanlon discussing plans to intentionally depress token prices post-launch so that insiders could accumulate more tokens at a lower cost. These revelations triggered immediate community backlash, raising alarms about transparency and fairness in Web3 fundraising and market practices.
In a public statement, Movement Labs confirmed the authenticity of the messages and said it was taking the matter seriously. The firm emphasized that Scanlon had been suspended, pending a full investigation. They also reaffirmed their commitment to ethical standards in token distribution and community governance.
Market watchers point out that this is not an isolated incident in the industry, where startup founders and insiders often work closely with market makers behind closed doors to influence token performance during critical early stages.
The incident highlights the growing need for regulatory clarity and decentralized transparency in token launches—a sentiment echoed by several industry veterans.
As of now, Movement Labs has not announced whether Scanlon will return to the project or face permanent removal.
Author
Surabh Yadav
