Movement Labs Files for Bankruptcy Amid MOVE Token Turmoil

Movement Labs has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware, following months of turmoil tied to the launch of its MOVE token.

The filing allows the company to continue operating while it restructures under court supervision, after a market-making scandal and exchange delistings rocked the project.

The controversy centered around a deal brokered by Movement Labs co-founder Rushi Manche with Web3Port, which received 66 million MOVE tokens worth about 5% of the token's supply. The tokens were later sold, creating downward price pressure and prompting an independent investigation.

Coinbase suspended MOVE trading in May 2025 after determining it no longer met listing standards, as the review into the market-making arrangement continued.