Movement Labs, the original developer of the Movement blockchain, filed for Chapter 11 bankruptcy protection earlier this week, according to a report from Unchained. Court filings show the company listed assets of between $100,001 and $500,000, while liabilities could reach as much as $10 million. Among the largest creditors named were co-founder Rushikesh “Rushi” Manche, the Delaware Division of Revenue, and Anchorage Digital. The filing comes after months of fallout tied to the December 2024 launch of the MOVE token. A market-making agreement had handed little-known firm Rentech control over 66 million MOVE tokens that could be sold into the market one day after launch, a setup that contributed to a sharp decline in price. The episode led to internal investigations, a break with Manche in May 2025, and a restructuring that moved development of the Movement blockchain to a separate company, Move Industries. Last month, Move Industries said it was shifting away from competing with other Ethereum scaling networks and would focus instead on cross-border payments, remittances, and stablecoin settlement.
Movement Labs, the original developer behind the Movement blockchain, filed for Chapter 11 bankruptcy earlier this week, according to Unchained, bringing a long stretch of controversy to a new point.
In its bankruptcy filings, the company reported assets between $100,001 and $500,000 and liabilities of up to $10 million. It listed co-founder Rushikesh “Rushi” Manche, the Delaware Division of Revenue, and Anchorage Digital among its largest creditors.
Problems followed the MOVE token launch
Movement Labs’ troubles began shortly after the December 2024 launch of the MOVE token. A market-making agreement had given a little-known company, Rentech, control of 66 million MOVE tokens that could be sold into the market one day after the token debuted. That arrangement contributed to a significant decline in price.
The fallout changed the company itself. In May 2025, Movement Labs separated from Manche after internal investigations.
Development moved to another company
Movement Labs also shifted responsibility for development of the Movement blockchain to a separate company, Move Industries.
Last month, Move Industries said it would stop focusing on competition with other Ethereum scaling networks and instead turn to cross-border payments, remittances, and stablecoin settlement. The company said it had access to licensed payment infrastructure in the U.S., Canada, and the European Union.
The Chapter 11 filing comes after the MOVE token controversy, the internal investigation, and the company’s change in direction.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
