An organization linked to the Movement Network has announced its intention to utilize $38 million retrieved from a market maker for the purpose of repurchasing MOVE tokens over the course of the next three months.
On March 24, the Movement Network Foundation reported that it had successfully reclaimed approximately $38 million in assets from a liquidity provider engaged to facilitate buy and sell orders for the Movement (MOVE) token on a major exchange.
This exchange subsequently removed the market maker due to “market irregularities,” leading to the freezing of the provider’s earnings and a prohibition against further market-making activities.
Market makers are crucial in maintaining liquidity for crypto tokens, helping to attract traders and stabilize prices by ensuring there are sufficient funds for both buying and selling.
### Movement Network Allocates $38 Million for Token Buyback
According to the exchange, the market maker in question sold 66 million MOVE tokens after the asset’s listing but placed minimal buy orders. This activity resulted in the market maker earning $38 million in Tether (USDT).
The exchange responded by freezing these profits and promptly notifying the Movement Network Foundation about the situation.
In turn, the foundation disclosed that it had completely severed ties with the market maker and recovered the funds that had been frozen due to the provider’s misconduct. These assets will be directed towards a buyback initiative:
> “All cash proceeds recovered from the Market Maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a $38 million USDT buyback program to acquire MOVE tokens for long-term utilization and to reintegrate USDT liquidity into the Movement ecosystem.”
Additionally, the organization has released a wallet address for its “Movement Strategic Reserve,” where the purchased MOVE tokens will be transferred periodically.
### Investigations into Market Irregularities
This incident follows a prior action by the exchange against another affiliated market maker. On March 9, the exchange announced that it had removed market makers associated with security projects and had confiscated their earnings to develop a compensation plan for affected users.
Beyond market makers, there have also been recent allegations of insider trading involving a staff member. On March 25, the exchange announced that it was investigating a member of its wallet team after receiving complaints of potential front-running of trades.