Movement Labs Files for Bankruptcy After MOVE Token Crisis

Movement Labs officially filed for Chapter 11 bankruptcy this week. The firm reported holding between $100,000 and $500,000 in assets while listing liabilities as high as $10 million. This filing marks the end of a difficult period for the company, which saw major internal shifts following the rocky introduction of the MOVE token in late 2024.

Trouble began shortly after the MOVE token hit the market. A controversial agreement allowed a firm named Rentech to sell 66 million tokens immediately after the launch, causing the price to crash. This event sparked widespread criticism and eventually led to the departure of co founder Rushi Manche in May 2025.

Following the turmoil, the development of the Movement blockchain was handed over to a separate entity known as Move Industries. While the project attempted to pivot toward cross border payments and stablecoin settlements, the financial damage from the earlier token scandal proved too difficult to overcome.

Investors should note that the original Movement Labs entity is now focused on the bankruptcy process. Meanwhile, Move Industries is moving forward with its own strategy for payment infrastructure. The market will be watching to see how these remaining efforts to settle the project transition affect the wider ecosystem.