Movement Labs files for Chapter 11 bankruptcy after months of MOVE token turmoil
Movement Labs, the developer of the Movement Ethereum layer-2 blockchain, filed for Chapter 11 bankruptcy protection in Delaware on July 15 under Subchapter V. The company can keep operating while it restructures, and the court approved interim measures letting it maintain bank accounts, manage cash, and access debtor-in-possession financing. Creditors have until Sept. 14 to file claims. Move Industries said the filing applies only to Movement Labs and that Move Industries continues normal operations. The bankruptcy follows a major market-making scandal tied to the MOVE token launch. Movement Labs suspended co-founder Rushi Manche after a deal with Web3Port that gave the market maker 66 million MOVE, or about 5% of supply, which was later sold and reportedly caused about $38 million in downward price pressure. Coinbase later suspended MOVE trading during its review. The MOVE token has since fallen more than 94% over the past year.
