Movement Labs files for bankruptcy after MOVE token scandal

Movement Labs filed for Chapter 11 bankruptcy after the MOVE token scandal, exchange bans, and failed expansion plans. The company will continue operating under court supervision as it restructures.

Movement Labs, the developer of the Movement blockchain and Ethereum layer-2 network, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. This move follows a turbulent year marked by a controversial market-making agreement that led to the rapid sale of 66 million MOVE tokens, causing a sharp price drop and triggering internal investigations. The fallout included bans from major exchanges like Binance. The company reported liabilities of up to $10 million, while its assets may be as low as $500,000. Despite raising significant funding and attempting to pivot toward cross-border payments and stablecoin settlement, the MOVE token scandal and ensuing litigation halted expansion plans and drained ecosystem liquidity. Under Subchapter V, Movement Labs will continue operating under court supervision as it restructures, with creditors able to file claims until September 14. The future of its blockchain network and partnerships remains uncertain as the company explores strategic alternatives and awaits further court hearings.