Movement Labs Collapses Into Bankruptcy After MOVE Token Scandals
The filing follows a year of governance disputes, a market-making scandal and a strategic shift toward payments as Movement seeks to restructure its debts.
- On July 15, Movement Labs filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, listing assets under $500,000 and liabilities reaching up to $10 million.
- Troubles began after the December 2024 launch of the MOVE token, when a market-making agreement handed 66 million tokens—about 5% of the supply—to intermediary Rentech, which allegedly misled the company.
- Wallets linked to market maker Web3Port sold tokens shortly after debut, generating about $38 million; Binance subsequently banned the account for what it described as misconduct, while Movement Labs hired Groom Lake to investigate.
- Leadership changes followed the inquiry, leading to the May 2025 separation from co-founder and former chief executive Rushikesh Rushi Manche, with core development transferred to Move Industries under chief executive Torab Torabi.
- Move Industries, now operating the blockchain as an independent network, denied involvement in the Chapter 11 case while continuing its pivot toward stablecoin infrastructure and cross-border payment services.
26 Articles
26 Articles
Movement Labs Files for Chapter 11 After Token Scandal
Movement Labs, the original developer behind the Movement blockchain, filed for Chapter 11 bankruptcy earlier this week, capping an extended period of controversy. Movement Labs in its filings reported between $100,001 and $500,000 in assets and liabilities of up to $10 million. The company listed co-founder Rushikesh “Rushi” Manche, the Delaware Division of Revenue and Anchorage Digital among its largest creditors. Movement Labs’ troubles began…
Movement Labs collapses into bankruptcy after MOVE token scandals
Movement Labs has filed for Chapter 11 bankruptcy with no more than $500,000 in assets and liabilities that could reach $10 million following more than a year of turmoil around the MOVE token. Court records show that MVMT Labs submitted…
Movement Labs files for Chapter 11 months after token scandal and strategic overhaul
The filing comes after months of upheaval that included a controversial market-making agreement, an internal investigation into its MOVE token launch, a Binance ban tied to its market maker and a last-ditch pivot from Ethereum scaling to cross-border payments.
Movement Labs Files For Bankruptcy Months After Token Scandal
Key Insights Movement Labs filed for bankruptcy in Delaware, with its co-founder being the leading creditor. The project has been under significant scrutiny over the past year after a scandal over its MOVE token. However, the splinter firm Move Industries has said it is not affected by the filing. MVMT Labs Inc., known as Movement Labs, filed for Chapter 11 bankruptcy protection in Delaware on July 15. The filing showed assets between $100,001 …
$141M Fundraise to $8 Daily Fees: Movement Labs Files for Bankruptcy
Movement Labs has filed for Chapter 11 insolvency protection in the U.S. Bankruptcy Court of Delaware. This follows months of controversy and a token scandal that left the network dealing with major financial issues. Movement’s Bankruptcy Timeline In its bankruptcy filing, the company said it has under 1,000 creditors, between $100,000 and $500,000 in assets, and more than $1 million in liabilities. The largest unsecured claim, worth more than $…
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