Movement Labs, the developer of the Movement blockchain network, filed for Chapter 11 bankruptcy protection in the US due to financial difficulties. Court documents show the company's assets range from $100,000 to $500,000, while total liabilities exceed $1 million, with fewer than 1,000 creditors. The filing follows ongoing controversies surrounding the MOVE token and the May 2025 departure of co-founder Rushi Manche, reflecting broader restructuring pressures faced by cryptocurrency sector companies amid regulatory scrutiny and market volatility.
Movement Labs Reports Asset and Liability Figures in Court Filing
According to court documents, Movement Labs disclosed assets ranging from $100,000 to $500,000 against total liabilities exceeding $1 million. The filing states the company has fewer than 1,000 creditors. A Chapter 11 filing allows companies to undergo a restructuring process without completely ceasing operations, with the company aiming to continue operations and improve its financial structure by restructuring its debts. Movement Labs is expected to continue its operations while conducting restructuring negotiations with its creditors. The documents show that the company's financial structure has deteriorated significantly recently, and its debt burden has exceeded its current assets.
Court Documents List Major Creditors Including Co-Founder and Digital Custodian
According to court records, the company's largest creditors include Rushi Manche, co-founder of Movement Labs, the Delaware Division of Revenue, and Anchorage Digital, a digital asset custody service provider.
MOVE Token Controversy and Binance Account Ban Preceded Filing
The bankruptcy filing comes after controversies surrounding MOVE, the native token of the Movement ecosystem. The company has long been in the public eye due to allegations regarding its market-making activities for the MOVE token. An internal investigation was launched within the company, and subsequently, Binance banned the market-making account allegedly linked to the incident from its platform.
Co-Founder Rushi Manche Departed Movement Labs in May 2025
Following these developments, Movement Labs announced in May 2025 that it had parted ways with co-founder Rushi Manche. This separation was considered a significant change in project management and negatively impacted investor confidence in the MOVE token.
FAQ
What financial figures did Movement Labs disclose in its Chapter 11 filing?
Court documents show Movement Labs' assets range from $100,000 to $500,000, while total liabilities exceed $1 million, with fewer than 1,000 creditors.
Who are the largest creditors listed in Movement Labs' bankruptcy filing?
According to court records, the company's largest creditors include Rushi Manche (co-founder of Movement Labs), the Delaware Division of Revenue, and Anchorage Digital (a digital asset custody service provider).
What controversies preceded Movement Labs' bankruptcy filing?
The filing comes after controversies surrounding MOVE token market-making activities, which led to an internal investigation and Binance banning a market-making account allegedly linked to the incident, followed by co-founder Rushi Manche's departure in May 2025.
