Movement Labs has filed for Chapter 11 protection in the U.S. Bankruptcy Court of Delaware, marking a new stage in the crisis that has engulfed the project since the launch of its MOVE token. Court documents list fewer than 1,000 creditors, assets of between $100,000 and $500,000, and liabilities of more than $1 million.

Bankruptcy filing and creditor claims

The filing names former co-founder Ruhikesh Manche as the holder of the largest unsecured claim, valued at more than $1.6 million. Other significant creditors include the Delaware Division of Revenue and Anchorage Digital. The first creditor hearing is scheduled for Aug. 20, according to the bankruptcy documents.

The Chapter 11 case follows months of operational and financial strain at the company. While the filing provides only a broad snapshot of Movement’s balance sheet, it underscores how far the project has fallen after raising substantial outside capital and positioning itself as a blockchain network built around the Move programming language and Ethereum connectivity.

MOVE token launch and market maker controversy

Movement’s troubles began after the December 2024 debut of the MOVE token. Soon after the token was listed on Binance, about $66 million worth of MOVE was sold into the market under a market-making arrangement with Rentech, according to the source article. The sharp increase in circulating supply sent the token’s price lower and erased billions of dollars in value within days.

Binance later barred Rentech for what it described as misconduct. The exchange said the firm sold the full allocation just one day after listing while placing very few buy orders. Binance also said the market maker made a $38 million profit before it was removed from the platform on March 18.

In response, Movement launched a token buyback program intended to repurchase MOVE and improve liquidity conditions in the ecosystem. The company also hired Groom Lake to review the Rentech arrangement. That review, according to the source, found ties between Rentech and the Chinese market maker Web3Port, a development that ultimately led to Manche’s dismissal over the scandal.

Funding strength did not translate into network traction

Before its collapse into Chapter 11, Movement had raised a reported $141.4 million across several funding rounds, including a Series A led by Polychain Capital. Despite that backing, the project’s on-chain activity remained weak.

Data cited from DeFiLlama shows daily app revenue has stayed below $800 since November 2025. Chain fees have remained in the single digits for months, and over the last 24 hours referenced in the report, fees totaled just $8.

At the same time, the network’s total value locked stood at roughly $133 million. The figures suggest a gap between the capital raised by the company and the level of fee generation on the chain itself.

Token decline and strategic pivot

The MOVE token hit a fresh all-time low on July 20 after months of losses. According to the source article, it fell from around $0.041 in January to $0.01043 two days before publication, leaving it less than 2% above that record low at the time of writing. CoinGecko data cited by the source put the token more than 99% below its all-time high of $1.45.

Movement was originally designed to connect blockchains built with the Move programming language to Ethereum. In June, however, the layer-2 project said it would shift its focus toward cross-border payments, remittances, and dollar-saving products.

The bankruptcy filing now places that pivot under a cloud, as the company attempts to reorganize amid creditor claims, weak network revenues, and the continuing aftermath of the MOVE token controversy.

Source: cryptopotato.com