Movement Labs Files for Bankruptcy
Following the MOVE token scandal, the company officially enters bankruptcy proceedings.
1Bankruptcy Process Begins
Movement Labs has filed for Chapter 11 bankruptcy in the U.S. The company's assets are estimated between $100,000 and $500,000, while liabilities exceed $1 million. Major creditors include co-founder Rushi Manche, Anchorage Digital, and the Delaware state tax department.
2MOVE Token Scandal
The company's troubles began with the launch of the MOVE token. A CoinDesk investigation in April 2025 revealed that a deal with a market maker gave excessive control over the token supply, leading to a sharp price drop.
3Fallout from the Scandal
Following the scandal, Binance suspended the market maker and froze $38 million for potential user compensation. Movement Labs and Movement Foundation launched an internal investigation. Coinbase halted MOVE trading, and the token's value fell by 32%.
4Management Shakeup
In May 2025, Movement Labs removed co-founder Rushi Manche. The company established Move Industries to focus on international payments and stablecoin transactions, but this failed to revive the token's price.
5Token Distribution Controversy
Reports claimed project management signed memorandums pledging 10% of MOVE tokens to advisors without investor disclosure. The company argued these documents lacked legal binding.
6Crypto Industry Trend
Movement Labs' bankruptcy is part of a 2026 trend seeing over 80 crypto projects shut down. The company's issues highlight the need for greater regulation and transparency in the crypto sector.
Original article: INCRYPTED — Movement Labs iflas başvurusunda bulundu