Movement Labs, developer of the Movement blockchain, has filed for bankruptcy, ending a period of punishment for the company over the market-making scandal involving its MOVE token.
MVMT Laboratories voluntarily foot filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on July 15. The court record says the company has between 200 and 999 creditors, with assets ranging from $100,001 to $1 million, and liabilities up to $10 million.
Ousted co-founder, Roshi Manchwas listed among the largest creditors with claims exceeding $1.6 million.
MVMT Labs is buried in controversy over its token launch
MVMT Labs’ problems began shortly after its mainnet and token launch in December 2024.
In March 2025, Binance selected The MOVE market maker disposed of 66 million tokens after the launch, generating net profits of $38 million. Consequently, Binance suspended MOVE trading, Followed by CoinbaseAs reported by Cryptopolitan.
A month after the Binance report, MOVE officially began investigating whether it was misled into signing a market-making agreement with Rentech, which gave the market maker significant control over 66 million MOVE tokens, or 5% of the supply.
Munch was fired amid controversy in May Cryptopolitan reported. The company announced that the Movement Network, a layer 2 network of Ethereum, will continue under different leadership from a separate entity called Move Industries.
We confirm that Rushi Manche has been suspended from Movement Labs. This decision has been made in light of current events and as a third party review is still ongoing by Groom Lake regarding regulatory governance and recent incidents involving the market maker.
– Movement (@movement_xyz) May 2, 2025
The movement is trying to reinvent itself
MVMT Labs’ bankruptcy filing comes a month after the new company announced plans to rebrand Movement.
The movement network is The move towards cross-border paymentsand remittances and settlement of stablecoins. In early June, Move Industries said it had access to licensed payment lines across the US, Canada and the European Union for “cross-border payments, remittances, and dollar savings products.”
The company also announced the buyback of approximately 19% of MOVE previously allocated to investors, representing 4.2% of the total supply, to reassure investors about the project’s long-term mission.
However, MOVE has not yet been able to make a significant return from the landfill.
At the time of writing, MOVE is trading at $0.01064, down 94.17% over the past year.
