Movement Labs Files for Chapter 11 Bankruptcy Protection
JH Kim
Summary
- Movement Labs filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
- The company faced allegations that its executives colluded with a market maker to sell, or dump, about $38 million of MOVE tokens.
- Movement Labs said it would move away from Ethereum layer-2 competition and focus on global payments, cross-border remittances and stablecoin payment services, but ultimately filed for bankruptcy protection.
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Movement Labs, the developer of the MOVE token, filed for Chapter 11 bankruptcy protection, Unfolded reported on July 21.
CoinDesk had previously reported allegations that Movement Labs executives colluded with a market maker to sell, or dump, about $38 million of MOVE tokens into the market.
Co-founder Rushi Manche left the company in May 2025. Movement Labs then overhauled its business strategy in June 2026 in an effort to navigate the crisis. The company said it would move away from competition in the Ethereum layer-2 market and focus on global payments, cross-border remittances and stablecoin payment services. It ultimately sought bankruptcy protection.
JH Kim
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