# Movement Labs Files for Bankruptcy Following the MOVE token scandal, the company officially enters bankruptcy proceedings. - **Source:** [INCRYPTED](https://brifing.si/source/7cd4625d-3f08-4cc1-983d-4c7d991839ba) - **Published:** 2026-07-22 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/3c359511-3b84-43e1-b2a9-d01d4073d425 ## Bankruptcy 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. ## MOVE 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. ## Fallout 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%. ## Management 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. ## Token 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. ## Crypto 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. ## Sources covering this story - https://incrypted.com/movement-labs-podala-zajavlenye-o-bankrotstve/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._