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Involvement of MOVE and Web3Port, linked to WLFI, exposed in the $38 million token sale scam affair

Web3Port and Movement Foundation, entities connected to WLFI, finalized a deal culminating in a $38 million token sell-off.

Involvement of MOVE and Web3Port, linked to WLFI, exposed in the $38 million token sale scam affair

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In some shocking revelations, it's been shown that Movement Foundation, a crypto venture backed by the Trump family's World Liberty Financial, is at the heart of a $38 million token dump scandal. A report by CoinDesk points to a suspicious deal between Movement and Web3Port, a China-based market maker.

According to the report, internal documents from the Movement Foundation raised red flags about its market-making deals. Co-founder Cooper Scanlon explained that more than 5% of MOVE tokens, assigned to Web3Port, were diverted through a little-known entity called Rentech. Scanlon claimed that Foundation was misled into believing Rentech was a subsidiary of Web3Port, but it turned out to be a separate entity controlling an unusually large share of tokens.

More alarmingly, the contract between the Foundation and Rentech included stipulations that incentivized a pump-and-dump scheme. Specifically, the contracts allowed Rentech to liquidate all its MOVE tokens if the fully diluted value exceeded $5 billion. In such a case, Rentech would be allowed to dump all the tokens and keep 50% of the profits, while the other 50% would go to the Movement Foundation.

This is exactly what happened on December 9, the same day the token launched on Binance. Web3Port liquidated its 66 million tokens, worth around $38 million at the time, causing the token to plunge and continue falling after the launch. Currently, these 66 million MOVE tokens are worth just $15.7 million.

Both Movement Foundation and Web3Port have close ties to Trump's World Liberty Financial. On January 28, WLFI bought 3.42 million MOVE tokens for $1.5 million, at $0.439 each, which have since lost more than half of their value. Additionally, Web3Port invested $10 million in WLFI in January.

Are Trump's crypto ventures just a front for manipulation and value erosion? The shady contract structure and the subsequent token dump have raised concerns about Trump's World Liberty Financial's crypto operations. Experts warn of potential conflicts of interest and opaque deal structures in WLFI's partnerships.

Furthermore, WLFI faces regulatory scrutiny, with lawmakers demanding transparency from the SEC due to Trump's 60% ownership. The SEC's sudden pause of its enforcement case against Justin Sun, a WLFI investor, has sparked suspicions of preferential treatment.

The planned USD1 stablecoin from WLFI also faces criticism, as concerns rise about Trump's influence compromising regulatory oversight. WLFI's international ventures, like its partnership with the Pakistan Crypto Council, have also sparked security concerns given Pakistan's high crypto adoption rates and rising tensions with India.

WLFI's investors include figures like Justin Sun, who faced SEC fraud charges before his case was paused post-WLFI investment, and Changpeng Zhao and Arthur Hayes, who have both been linked to regulatory violations. The ongoing investigations into WLFI's operations, and the broader crypto industry, are likely to intensify ahead of U.S. stablecoin legislation debates.

  1. The Movement Foundation, backed by Trump's World Liberty Financial, is embroiled in a $38 million token dump scandal involving Web3Port, a China-based market maker, as revealed in a CoinDesk report.
  2. Co-founder Cooper Scanlon disclosed that more than 5% of MOVE tokens, assigned to Web3Port, were diverted through a questionable entity called Rentech.
  3. Scanlon stated that the Foundation was misled into believing Rentech was a subsidiary of Web3Port, but it turned out to be a separate entity controlling an abnormal share of tokens.
  4. The contract between the Foundation and Rentech was designed to incentivize a pump-and-dump scheme, allowing Rentech to dump all its MOVE tokens if the fully diluted value exceeded $5 billion.
  5. On December 9, the same day the token launched on Binance, Web3Port liquidated its 66 million tokens, worth approximately $38 million at the time, causing the token's value to plummet.
  6. The general-news sector is abuzz with questions about Trump's crypto ventures, with experts raising concerns about potential conflicts of interest and opaque deal structures within Trump's World Liberty Financial's partnerships.
  7. WLFI's investors include figures like Justin Sun, Changpeng Zhao, and Arthur Hayes, who have all been linked to regulatory violations, adding to the scrutiny surrounding the company.
Web3Port and Movement Foundation, organizations affiliated with WLFI, executed an agreement leading to a token sale worth $38 million.

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