Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the U.S. after months of turmoil triggered by its controversial token launch and a failed effort to revive the project.
Court filings show MVMT Labs filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on July 15.
The company is seeking to restructure under court supervision while continuing operations. Initial hearings have already been held, with creditors required to file claims by Sept. 14.
The bankruptcy follows a turbulent year for the project, which was rocked by allegations surrounding its market-making arrangements during the launch of its MOVE token.
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In May 2025, Movement Labs suspended co-founder Rushi Manche after announcing an independent investigation into a market-maker agreement linked to Rentech and Web3Port.
Binance later said the market maker rapidly sold 66 million MOVE tokens, or about 5% of the total supply, contributing to a sharp decline in the token’s price. Coinbase also suspended MOVE trading after saying the token no longer met its listing standards.
Movement later sought to rebuild investor confidence.
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In June 2026, the project rebranded around a new strategy focused on cross-border payments, stablecoin settlement and financial infrastructure for emerging markets, shifting away from its original Ethereum scaling ambitions. The project also announced token buybacks and investor realignment efforts as part of the overhaul.
Those measures, however, failed to prevent the bankruptcy filing. MOVE has continued to trade near record lows despite the strategic pivot.
The token changes hands at about $0.011, according to CoinGecko, down roughly 99% from its all-time high of $1.45 reached in December 2024 and about 94% over the past year.
According to the Chapter 11 petition, MVMT Labs reported between $100,001 and $1 million in assets, $1 million to $10 million in liabilities, and between 200 and 999 creditors.
The voluntary bankruptcy case remains open in the U.S. Bankruptcy Court for the District of Delaware under Judge Thomas M. Horan.
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This story was originally published by TheStreet on Jul 21, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.