Movement Labs files for Chapter 11 after MOVE token turmoil

MVMT Labs, the former developer of the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware.

The company submitted a voluntary petition on 15 July under Subchapter V, a streamlined restructuring process available to qualifying small businesses.

Court records show that MVMT Labs reported less than $1 million in assets, between $1 million and $10 million in liabilities and between 200 and 999 creditors. Creditors have until 14 September to submit claims.

The filing follows prolonged controversy surrounding the launch of the MOVE token and a disputed market-making arrangement.

Binance said an authorised market maker sold approximately 66 million MOVE tokens shortly after the token was listed, with few corresponding buy orders. The exchange later removed the market maker and froze proceeds intended for user compensation.

Movement Labs and the Movement Network Foundation said they had not been aware of the market maker’s conduct and opened an investigation into the arrangement.

Coinbase subsequently suspended MOVE trading after concluding that the asset no longer met its listing standards.

The bankruptcy applies to MVMT Labs rather than Move Industries, which took over development and operations of the Movement ecosystem in late 2025 and says the network continues to operate.

The case remains open, with MVMT Labs seeking to restructure under court supervision.

Why does it matter?

The filing shows how controversial token distribution and market-making arrangements can create prolonged governance, reputational and financial risks for blockchain companies. It also highlights the distinction between a decentralised network and the corporate entities involved in developing it, as the bankruptcy concerns MVMT Labs while another company continues operating the Movement ecosystem.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!