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Movement Labs files for Chapter 11 after MOVE token collapse
The U.S. filing, made July 15 in Delaware, sets a Sept. 14 deadline for creditors to submit claims as the MOVE token trades near $0.011.
Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the U.S., according to Yahoo Finance. The company submitted the petition on July 15 to the U.S. Bankruptcy Court for the District of Delaware and is seeking to restructure under court supervision while continuing operations.
TheStreet reported that creditors must file claims by Sept. 14, following earlier court activity. The company’s voluntary case remains open under Judge Thomas M. Horan.
The bankruptcy comes after months of turbulence tied to Movement Labs’ controversial token launch and related market-making allegations. 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, and Binance later said its market maker sold 66 million MOVE tokens, about 5% of total supply.
Yahoo Finance also noted that Coinbase suspended MOVE trading for not meeting listing standards, and that the project later rebranded in June 2026 with a strategy focused on cross-border payments and stablecoin settlement, moving away from its original Ethereum scaling plans. Despite token buybacks and investor realignment efforts, the MOVE token was quoted at about $0.011, down roughly 99% from its $1.45 all-time high in December 2024. The Chapter 11 petition states assets between $100,001 and $1 million, liabilities between $1 million and $10 million, and 200 to 999 creditors.
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