Key facts
- Movement Labs, developer of the Movement blockchain, has filed for Chapter 11 bankruptcy.
- The company's assets are valued up to $500,000, with liabilities exceeding $1 million.
- Movement Labs suspended co-founder Rushi Manche in May 2025 over a market-making deal.
- A market maker sold 66 million MOVE tokens post-launch, impacting the token's price.
- Coinbase suspended trading of the MOVE token.
- Move Industries, which took over operations, continues to operate normally.
Movement Labs, the developer behind the Movement Ethereum layer-2 blockchain, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The petition was filed on July 15 under Subchapter V, a streamlined reorganization process for qualifying small businesses, allowing the company to continue operating while it restructures under court supervision. The filing follows months of turmoil tied to the launch of Movement's MOVE token and a controversial market-making agreement. Movement Labs suspended co-founder Rushi Manche in May 2025 over a deal with Web3Port, a market maker that received 66 million MOVE tokens and later sold them, reportedly creating significant downward price pressure. Coinbase suspended MOVE trading later that month. Move Industries CEO Torab stated that Move Industries, which took over development and operations of the Movement ecosystem in December 2025, continues to operate normally and is not part of the bankruptcy filing. The MOVE token has fallen more than 94% over the past year.