Movement Labs Chapter 11 filing has put the developer of the Movement blockchain under court protection in the United States after months of upheaval tied to its token launch and an unsuccessful bid to relaunch the project.
Court records show MVMT Labs sought Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on July 15. The company plans to reorganize under court supervision while keeping operations running. Initial hearings have taken place and creditors are required to submit claims by September 14.
The bankruptcy caps a volatile period marked by controversy over market-making during the debut of the MOVE token. In May 2025, Movement Labs suspended co-founder Rushi Manche and announced an independent review of a market-maker agreement linked to Rentech and Web3Port.
According to Binance, the market maker quickly sold 66 million MOVE tokens, about 5 percent of the total supply, contributing to a steep price drop. Coinbase later halted MOVE trading, saying the asset no longer met its listing standards.
The company later attempted to restore confidence among investors.
Movement Labs Chapter 11 and the failed turnaround
In June 2026, Movement Labs rebranded with a strategy centered on cross-border payments, stablecoin settlement and financial infrastructure for emerging markets. The shift moved the project away from its original Ethereum scaling plans. The company also announced token buybacks and investor realignment as part of the overhaul.
Those steps did not avert the bankruptcy. MOVE has remained near record lows despite the pivot. The token trades around $0.011, according to CoinGecko, down about 99 percent from its December 2024 peak of $1.45 and roughly 94 percent over the past year.
The Chapter 11 petition lists between $100,001 and $1 million in assets, $1 million to $10 million in liabilities and between 200 and 999 creditors. The voluntary case is proceeding in the Delaware court before Judge Thomas M. Horan.
The company’s plans to reorganize and maintain operations under court supervision come as crypto markets continue to reward larger, more diversified technology groups, including firms such as Alphabet, even as smaller blockchain-native projects struggle.
