Controversial Comeback: Suspended Movement Labs Co-Founder Launches $100M Crypto Fund

Rushi Manche, a co-founder of Movement Labs who was suspended and later terminated earlier this year over a market-making controversy, has announced the launch of Nyx Group, a new multi-strategy investment initiative with plans to deploy up to $100 million. The fund will focus on providing liquid capital and hands-on operational support to vetted cryptocurrency projects preparing for token launches.

Manche, who co-founded the startup behind the MOVE token, was suspended in May amid an internal investigation into allegations of misconduct related to a market-making arrangement. The controversy involved 66 million MOVE tokens (approximately 5% of the supply) that were sold shortly after launch, prompting scrutiny from exchanges and the community. Movement Labs initiated a third-party review and later restructured under new leadership as Move Industries. Manche has stated "mistakes were made" but denied coordinating any improper activity and declined to comment further due to ongoing litigation.

Nyx Group, funded by several unnamed partners and family offices, aims to address what it describes as a "critical gap" in the current crypto landscape. The fund will offer founders not just capital but also expertise in areas including regulatory compliance, community building, treasury management, and securing institutional interest. Manche told The Block the group has already been operating for a few months and has made some initial investments, with plans to deploy the $100 million over the next few years.

The investment model is highly selective, focusing on founders the team "knows personally and deeply trusts," and projects backed by reputable funds or showing traction in revenue, active users, and community strength. Nyx Group also plans to provide post-launch operational support, offering guidance on foundation operations and connecting projects with strategic partners. Manche emphasized the fund's desire to be "the most founder-friendly partner in the space," providing favorable terms and capital during difficult market periods.

This development raises significant questions about accountability and second chances in the cryptocurrency industry, as a figure suspended for misconduct quickly returns with substantial capital. The success of Nyx Group will likely depend on its ability to overcome the reputational shadow of its founder's past and effectively scale its intensive, hands-on support model across multiple investments.