Movement Labs Files for Bankruptcy After MOVE Token Scandal

Movement Labs has filed for Chapter 11 bankruptcy in Delaware. The filing reveals the company has under 1,000 creditors and liabilities exceeding $1 million. The firm, which once secured over $141 million in funding, is now struggling to manage its remaining assets which total less than $500,000.

The project faced intense scrutiny following the December 2024 launch of its MOVE token. A market making agreement with Rentech went sour when the firm sold $66 million worth of tokens shortly after listing, wiping out significant market value. Binance later banned Rentech for misconduct, and Movement Labs fired its co founder Ruhikesh Manche after discovering hidden ties between the market maker and other entities.

Financial struggles extend beyond the token scandal. On chain data indicates that the network is generating less than $10 in daily fees. The price of the MOVE token has crashed more than 99 percent from its peak, hitting a new all time low in late July.

With a first creditor hearing scheduled for August 20, investors are watching to see what remains of the platform. Although the team previously attempted to pivot toward cross border payments and remittance products, the bankruptcy filing signals a difficult path forward for the ecosystem.