Movement Labs Files for Chapter 11 Bankruptcy With More Than $1 Million in Liabilities

After months of turmoil tied to the MOVE token, Movement Labs has sought Chapter 11 bankruptcy protection in the United States, according to court filings, marking another setback for the developer of the Movement blockchain.

The bankruptcy documents show Movement Labs holds between $100,000 and $500,000 in assets, while listing more than $1 million in liabilities. The filing also indicates the company has fewer than 1,000 creditors. 

Among the largest creditors named in the court records are Movement Labs co-founder Rushi Manche, Anchorage Digital, and the Delaware Division of Revenue.

The bankruptcy filing comes after a series of events that placed the project under scrutiny, including controversy over market-making activity involving the MOVE token, an internal investigation, and Binance’s decision to ban the account associated with the market-making activity. Movement Labs also severed ties with co-founder Rushi Manche in May 2025.

In a statement to the media, Move Industries Chief Executive Officer Torab Torabi said the company serves as the development team for the broader Movement ecosystem but is separate from MVMT Labs, the entity that filed for bankruptcy. Torabi said Move Industries has no affiliation with the bankruptcy proceedings and continues to operate its business as usual.

Source: CoinDesk