Movement Network recovers $38M to buy back MOVE tokens

The Movement Network Foundation has announced plans to use $38 million in recovered funds to repurchase MOVE (CRYPTO:MOVE) tokens over three months, following a market manipulation incident involving a rogue liquidity provider.

Binance froze $38 million in USDT (CRYPTO:USDT) from the market maker after detecting irregularities, including the sale of 66 million MOVE tokens paired with minimal buy orders.

The exchange offboarded the market maker for violating its policies, citing “market irregularities” that destabilised MOVE’s price.

The recovered funds will fuel a buyback program via the Movement Strategic Reserve, with purchased tokens stored in a dedicated wallet.

“All cash proceeds recovered from the Market Maker will be used… to return the USDT liquidity to the Movement ecosystem,” the foundation stated.

This follows Binance’s broader crackdown on affiliated market makers, including recent actions against GoPlus Security and MyShell.

Separately, Binance is investigating a staff member for alleged insider trading, highlighting ongoing efforts to address misconduct.

The MOVE buyback aims to restore confidence after the market maker’s actions, though analysts will monitor whether the reserve’s liquidity injections stabilise the token’s value.

The incident underscores risks tied to centralised liquidity providers and the importance of exchange oversight.

While the recovery and buyback signal proactive governance, long-term success hinges on preventing similar exploits and maintaining transparency.

At the time of reporting, the Movement (MOVE) price was $0.5703.