Movement Labs, the company responsible for developing the Movement blockchain, has recently made headlines due to its decision to file for Chapter 11 bankruptcy protection in the U.S. This move comes after a period of turmoil sparked by a controversial token launch and unsuccessful attempts to revive the struggling project.
According to court filings, MVMT Labs submitted its Chapter 11 protection request to the U.S. Bankruptcy Court for the District of Delaware on July 15. The company aims to undergo a restructuring process under court supervision while continuing its operations. Initial hearings have already taken place, and creditors have until Sept. 14 to file their claims.
The decision to file for bankruptcy follows a turbulent year for the project, which faced allegations related to its market-making arrangements during the launch of its MOVE token. In May 2025, Movement Labs suspended co-founder Rushi Manche after launching an independent investigation into a market-maker agreement associated with Rentech and Web3Port.
Subsequent revelations from Binance indicated that the market maker had rapidly sold 66 million MOVE tokens, accounting for approximately 5% of the total supply. This mass sell-off significantly impacted the token’s price, leading to Coinbase suspending MOVE trading due to non-compliance with its listing standards.
In an effort to rebuild investor confidence, Movement Labs underwent a strategic rebranding in June 2026. The project shifted its focus to cross-border payments, stablecoin settlement, and financial infrastructure for emerging markets, moving away from its initial Ethereum scaling goals. Token buybacks and investor realignment efforts were also announced as part of the overhaul.
Despite these measures, MOVE token prices continued to plummet, trading at around $0.011 according to CoinGecko. This represents a staggering 99% decrease from its all-time high of $1.45 in December 2024 and a 94% decline over the past year.
The Chapter 11 petition revealed that MVMT Labs reported assets ranging from $100,001 to $1 million, liabilities between $1 million and $10 million, and 200 to 999 creditors. The voluntary bankruptcy case remains ongoing in the U.S. Bankruptcy Court for the District of Delaware under the supervision of Judge Thomas M. Horan.
This story was originally featured on TheStreet on July 21, 2026, and was first published in the MARKETS section. For more information and updates on this developing story, stay tuned to TheStreet.
