- Movement Labs has officially filed for bankruptcy.
- The firm has since been embroiled in a controversy involving a market-making deal that crashed its token price.
- Movement has now rebranded as a cross-border and payment network.
Movement Labs, the developer of the Movement blockchain, has filed for bankruptcy, ending a punishing stretch for the company over a market-making scandal involving its MOVE token.
MVMT Labs voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on July 15. The court record says the company has between 200 and 999 creditors, with $100,001 to $1 million in assets, and liabilities of up to $10 million.
The ousted co-founder, Rushi Manche, was listed among the largest creditors with claims of over $1.6 million.
MVMT Labs buried in a token launch controversy
MVMT Labs’ troubles began shortly after its mainnet and token launched in December 2024.
In March 2025, Binance identified that a MOVE market maker had dumped 66 million tokens following the launch, netting $38 million in profit. Binance consequently suspended the trading of MOVE, followed by Coinbase, Cryptopolitan reported.
A month after the Binance report, Movement formally began investigating whether it was misled into signing a market-making agreement with Rentech, which gave the market maker outsized control of 66 million MOVE tokens, or 5% of the supply.
Manche was ousted amid the controversy in May, as Cryptopolitan reported. The company announced that Movement, an Ethereum Layer 2 network, will continue under different leadership from a separate entity called Move Industries.
We confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of ongoing events and as the third-party review is still being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker.
— Movement (@movement_xyz) May 2, 2025
Movement attempts to reinvent itself
MVMT Labs bankruptcy filing comes a month after the new company announced plans to rebrand Movement.
Movement Network is pivoting toward cross-border payments, remittances, and stablecoin settlement. Early in June, Move Industries said it had obtained access to licensed payment rails across the United States, Canada, and the European Union for “cross-border payments, remittances, and dollar savings products.”
The company also announced it repurchased about 19% of MOVE previously allocated to investors, which represents 4.2% of total supply, to reassure investors on the long-term mission of the project.
However, MOVE has yet to make a significant comeback from the dump.
At the time of writing, MOVE trades at $0.01064, down 94.17% over the past year.
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FAQs
Who filed for bankruptcy and where?
MVMT Labs, the developer of the Movement blockchain, filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware on July 15, 2026. The case is being heard by Judge Thomas M. Horan.
What triggered Movement's collapse?
A market-making arrangement allowed 66 million MOVE tokens, about 5% of the supply, to be sold one day after the token's December 2024 debut, driving a steep price drop that led to a Binance account ban, a Coinbase suspension and an internal investigation.
How much is the MOVE token worth now?
MOVE trades at about $0.011, down roughly 99% from its all-time high of $1.45 in December 2024 and about 94% over the past year.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Ibiam Wayas
Ibiam Wayas has covered the crypto news beat since 2019. He studied Computer Science at National Open University of Nigeria. His work has appeared on various crypto news platforms, including Coinfomania, Crypto News Australia, and AltcoinBuzz. Drawing on his background in Computer Science, he now focuses on crypto, robotics, and longevity news.
