Movement Labs, the developer of the Movement blockchain, sought Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on July 15. The filing marked the culmination of significant challenges facing the cryptocurrency project over the preceding months. The company indicated it would pursue restructuring while maintaining operations, with creditors required to submit claims by Sept. 14.
The bankruptcy stemmed from substantial turmoil surrounding the launch of the project’s MOVE token. In May 2025, Movement Labs suspended co-founder Rushi Manche following the announcement of an independent investigation into market-making agreements involving Rentech and Web3Port. Binance subsequently disclosed that a market maker had rapidly offloaded 66 million MOVE tokens, representing approximately 5% of total supply, which contributed to significant downward pressure on the token’s value. Coinbase also halted trading of MOVE, citing that the token no longer satisfied its listing criteria.
Attempts to stabilize the project and restore market confidence followed these developments. In June 2026, Movement reoriented its strategic direction toward cross-border payments, stablecoin settlement, and financial infrastructure targeting emerging markets, departing from its initial focus on Ethereum scaling solutions. The project also initiated token buyback programs and investor realignment initiatives as part of the broader overhaul. These recovery efforts proved unsuccessful in preventing the bankruptcy filing.
The MOVE token continued its descent to substantially depressed levels. Trading at approximately $0.011 according to CoinGecko data, the token had declined roughly 99% from its all-time high of $1.45 recorded in December 2024 and approximately 94% over the preceding year. According to the Chapter 11 petition, MVMT Labs reported assets between $100,001 and $1 million, liabilities between $1 million and $10 million, and between 200 and 999 creditors. The case remains pending in the U.S. Bankruptcy Court for the District of Delaware under Judge Thomas M. Horan.
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