Rushi Manche returns with $100M fund after scandalous Movement Labs exit

Rushi Manche has made a return to the crypto industry with his new company, Nyx Group. Manche has pledged $100 million to support blockchain founders.

Founders familiar with and trusted by the Nyx Group are the only individuals eligible for Rushi Manche’s $100 million support initiative. He indicated that additional information about the partners would be shared soon.

What is Rushi Manche doing now?

Former Movement Labs co-founder Rushi Manche has made a reappearance in the crypto industry with Nyx Group, a multi-strategy investment initiative.

Nyx Group announced in an official statement that it plans to deploy up to $100 million into liquid markets while offering operational support to token-launching project founders.

The initiative brings together multiple partners and family offices, but Manche has not yet disclosed the specific backers.

The investment group aims to address what Manche describes as a critical gap in the current crypto landscape, where founders have limited access to capital during challenging market conditions.

Nyx Group will also offer hands-on support to help founders secure capital, attract investors, set up their foundations, and connect with key partners.

“Crypto is entering a new chapter rife with opportunity and uncertainty,” Manche said in the announcement. “Nyx Group aims to match founders we know and trust with the funds and hands-on counsel they need to bring important, transformative tokens and projects to life.”

How will Nyx Group invest its $100M fund?

Nyx Group explained that investments will be limited to founders the team knows personally and deeply trusts. The group will also only back founders building projects that add value through community-oriented initiatives or technological innovation.

Manche claims that Nyx Group has already been operating for a few months and has made some initial investments, but he didn’t provide specific details. Investment decisions are made by committee, and the group is reportedly focusing on founders backed by reputable funds or showing traction in areas like revenue, active users, and community strength.

Manche emphasized this approach reflects the type of support he wished he had during his own entrepreneurial journey. Nyx Group is also considering taking governance positions, foundation roles, or board seats in supported projects.

Before Nyx Group, Manche was booted from Movement Labs, the blockchain infrastructure startup he co-founded with fellow Vanderbilt University dropout, Cooper Scanlon. Movement Labs suspended co-founder Rushi Manche while it investigated allegations of organizational governance in May 2025 after Coinbase delisted the MOVE token.

The scandal involved 66 million MOVE tokens that were dumped on the market in December 2024, which resulted in $38 million in profits for a market maker called Rentech. Coinbase suspended trading of the MOVE token after it was reported that a market maker had been involved in a token dump.

At the time, CoinDesk reported that it had seen evidence that shadow advisers received large token allocations as part of questionable agreements with Movement Labs, citing internal documents it reviewed.

Cryptopolitan previously reported that the scandal exposed chaotic internal operations and raised questions about governance and oversight. Movement Labs hired blockchain intelligence firm Groom Lake to conduct a third-party review of the situation.

The fallout damaged Movement Labs’ reputation significantly, and the company’s MOVE token saw its price tumble by 23% to an all-time low of $0.18 at the time, following the Coinbase delisting announcement. The token has since lost over 70% of its value from its all-time high.

Movement Labs first suspended Manche in May before it eventually let him go on May 7. The company announced it would continue under different leadership, rebranding as Move Industries with Torab Torabi as CEO and Will Gaines as president.