Movement Labs has filed for Chapter 11 insolvency protection in the U.S. Bankruptcy Court of Delaware.
This follows months of controversy and a token scandal that left the network dealing with major financial issues.
Movement’s Bankruptcy Timeline
In its bankruptcy filing, the company said it has under 1,000 creditors, between $100,000 and $500,000 in assets, and more than $1 million in liabilities. The largest unsecured claim, worth more than $1.6 million, belongs to former co-founder Ruhikesh Manche. Other major creditors are the Delaware Division of Revenue and Anchorage Digital.
The firm’s problems started in December 2024, after it launched its MOVE token. But shortly after its debut on Binance, some $66 million worth of the tokens were dumped onto the market as part of a market-making deal with Rentech. This sudden increase in supply led to its price tumbling and wiped out billions of dollars in value within days.
Binance later banned Rentech for misconduct, accusing it of selling the entire stash just one day after the listing while placing very few buy orders. According to the exchange, the market maker earned a profit of $38 million before it removed it from its platform on March 18.
Movement then launched a token buyback program in response to repurchase MOVE tokens and restore liquidity to the ecosystem. It also contracted Groom Lake to review its deal with Rentech, after which it was discovered that it had ties to the Chinese market maker Web3Port, ultimately leading to the dismissal of Manche over the scandal.
Per the bankruptcy filing, the first creditor hearing is scheduled for August 20.
From $141M to $8 in Daily Fees
Interestingly, Movement had raised a total of $141.4 million across several funding rounds, including a Series A led by Polychain Capital. On paper, that level of funding should have provided the project with some financial stability, but the network’s on-chain activity tells a different story.
DeFiLlama data shows its daily app revenue has been less than $800 since November 2025. The project’s chain fees have also stayed in the single digits for months, with returns for the last 24 hours at just $8 per the same source.
MOVE hit a new all-time low on July 20, after a stormy few months where it went from about $0.041 in January to $0.01043 two days ago. At the time of writing, it had moved less than 2% from the all-time low, with its new level representing a plunge of over 99% from its all-time high of $1.45, according to CoinGecko data. Meanwhile, the network’s Total Value locked (TVL) sits at roughly $133 million.
Movement was originally made to link blockchains built on its Move programming language with Ethereum. But the layer-2 network announced in June that it would be pivoting toward cross-border payments, remittances, and dollar-saving products.
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Source: https://cryptopotato.com/141m-fundraise-to-8-daily-fees-movement-labs-files-for-bankruptcy/
