Movement Labs Files for Chapter 11 Bankruptcy Amid Turbulent Year

Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the U.S. after months of turmoil triggered by its controversial token launch and a failed effort to revive the project.

Source: s.yimg.com

Court filings show MVMT Labs filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on July 15. The company is seeking to restructure under court supervision while continuing operations. Initial hearings have already been held, with creditors required to file claims by September 14.

The bankruptcy follows a turbulent year for the project, which was rocked by allegations surrounding its market-making arrangements during the launch of its MOVE token. In May 2025, Movement Labs suspended co-founder Rushi Manche after announcing an independent investigation into a market-maker agreement linked to Rentech and Web3Port.

Binance later said the market maker rapidly sold 66 million MOVE tokens, or about 5% of the total supply, contributing to a sharp decline in the token’s price. Coinbase also suspended MOVE trading after saying the token no longer met its listing standards.

Movement later sought to rebuild investor confidence by rebranding around a new strategy focused on cross-border payments, stablecoin settlement, and financial infrastructure for emerging markets, shifting away from its original Ethereum scaling ambitions. The project also announced token buybacks and investor realignment efforts as part of the overhaul.

However, those measures failed to prevent the bankruptcy filing. MOVE has continued to trade near record lows despite the strategic pivot. The token changes hands at about $0.011, according to CoinGecko, down roughly 99% from its all-time high of $1.45 reached in December 2024 and about 94% over the past year.

According to the Chapter 11 petition, MVMT Labs reported between $100,001 and $1 million in assets, $1 million to $10 million in liabilities, and between 200 and 999 creditors. The voluntary bankruptcy case remains open in the U.S. Bankruptcy Court for the District of Delaware under Judge Thomas M. Horan.

The tumultuous year for Movement Labs highlights the challenges faced by cryptocurrency projects in maintaining investor trust and navigating the complex regulatory landscape.

Key Statistics:

• MVMT Labs filed for Chapter 11 protection on July 15.
• The company is seeking to restructure under court supervision while continuing operations.
• Creditors are required to file claims by September 14.
• MOVE token has traded near record lows despite the strategic pivot.
• The token’s price has declined by roughly 99% from its all-time high of $1.45 reached in December 2024.