Movement Labs Files for Chapter 11 Bankruptcy as MOVE Token Plummets 94% in Year

MOVE0.55%
COIN9.52%
According to court records, Movement Labs, developer of the Movement Ethereum layer-2 blockchain, filed for Chapter 11 bankruptcy protection on July 15 under Subchapter V, a streamlined reorganization process for small businesses. The filing follows months of turmoil tied to the MOVE token launch and a controversial market-making scandal. The token has collapsed more than 94% over the past year to approximately $0.01. In May 2025, Movement Labs suspended co-founder Rushi Manche over a deal with market maker Web3Port, which received 66 million MOVE tokens and later sold the holdings, reportedly creating roughly $38 million in downward price pressure. Coinbase suspended MOVE trading that month. Move Industries, which took over operations from Movement Labs in December 2025, continues operating normally.
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