Movement Labs has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, marking the latest chapter in a difficult period marked by token controversy, declining network activity, and mounting financial pressure.
The MOVE token is now trading more than 99% below its all time high after recently falling to a new record low.
Bankruptcy Follows Months of Turmoil
According to court filings, Movement Labs has fewer than 1,000 creditors, assets valued between $100,000 and $500,000, and liabilities exceeding $1 million.
The company’s largest unsecured creditor is former co founder Ruhikesh Manche, who is owed more than $1.6 million. Other significant creditors include the Delaware Division of Revenue and Anchorage Digital.
Movement’s troubles began shortly after the launch of its MOVE token in December 2024. Following the token’s listing on Binance, approximately $66 million worth of MOVE entered the market through a market making agreement with Rentech, triggering heavy selling pressure that erased billions of dollars in market value within days.
Binance later removed Rentech from its platform, accusing the firm of selling nearly its entire allocation within a day of the listing while providing minimal buy side liquidity. The exchange said the market maker generated roughly $38 million in profit before being banned in March.
In response, Movement launched a token buyback initiative aimed at restoring liquidity and rebuilding confidence. The company also hired Groom Lake to investigate its agreement with Rentech. The review reportedly uncovered links between Rentech and Chinese market maker Web3Port, ultimately leading to Manche’s dismissal.
The first hearing in the bankruptcy proceedings is scheduled for August 20.
Heavy Funding Failed to Prevent Decline
Despite raising approximately $141.4 million across multiple funding rounds, including a Series A led by Polychain Capital, Movement struggled to convert investor backing into sustainable network growth.
Data from DeFiLlama shows that application revenue has remained below $800 per day since November 2025. Blockchain fee generation has been even weaker, with the network collecting only about $8 in fees over the past 24 hours.
MOVE has also experienced a dramatic collapse in market value. After trading near $0.041 in January, the token fell to a record low of around $0.01043 on July 20. At the time of writing, it remained only slightly above that level, representing a decline of more than 99% from its all time high of $1.45, according to CoinGecko.
Meanwhile, the network’s total value locked stands at roughly $133 million.
Movement was initially developed as a Layer 2 network designed to connect Move based blockchains with Ethereum. However, in June the project shifted its strategic focus toward cross border payments, remittances, and dollar based savings products in an effort to revive adoption.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
