Movement Labs files for Chapter 11 bankruptcy following MOVE token collapse
The firm behind the Movement blockchain reported liabilities of up to $10 million as the MOVE token trades near record lows, with creditors required to lodge claims by September.
Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The voluntary petition, lodged on 15 July 2026, marks the culmination of a turbulent period for the project, which has been rocked by allegations surrounding its market-making arrangements and a failed effort to revive investor confidence through a strategic pivot.
Court filings indicate that the company reported assets between $100,001 and $1 million, with liabilities ranging from $1 million to $10 million. The estate lists between 200 and 999 creditors. The case is being overseen by Judge Thomas M. Horan, with initial hearings already conducted and a deadline for creditors to file claims set for 14 September 2026. Movement Labs is seeking to restructure under court supervision while continuing its operations.
The bankruptcy follows a series of operational and reputational setbacks that began in May 2025. At that time, the company suspended co-founder Rushi Manche amid an independent investigation into market-maker agreements linked to Rentech and Web3Port. Subsequently, Binance reported that its appointed market maker rapidly sold 66 million MOVE tokens, representing approximately 5 per cent of the total supply, which contributed to a sharp decline in the asset’s price.
Market access deteriorated further when Coinbase suspended trading of the MOVE token, citing that it no longer met the exchange’s listing standards. The token’s value has since cratered, trading at approximately $0.011 according to CoinGecko data. This represents a decline of roughly 99 per cent from its all-time high of $1.45 reached in December 2024, and a drop of about 94 per cent over the past year.
In June 2026, the project attempted to rebuild its standing by rebranding around a new strategy focused on cross-border payments, stablecoin settlement, and financial infrastructure for emerging markets. This shift marked a departure from its original ambitions in Ethereum scaling. Despite announcing token buybacks and investor realignment efforts as part of the overhaul, these measures failed to prevent the eventual bankruptcy filing.
