Movement Labs files for Chapter 11 bankruptcy after raising $141.4M, citing token price collapse from market-making scandal and daily revenue dropping to under $800.
Tech & Launches ·
Movement Labs has filed for Chapter 11 bankruptcy protection in Delaware after months of turmoil stemming from its MOVE token launch. The company reported holding between $100,000 and $500,000 in assets against liabilities exceeding $1 million, with fewer than 1,000 creditors. Former co-founder Ruhikesh Manche holds the largest unsecured claim at over $1.6 million following his dismissal over the market-making affair.
The financial deterioration traces to December 2024, when a market maker named Rentech dumped approximately $66 million in MOVE tokens immediately after the token's Binance listing, earning roughly $38 million in profit before the exchange banned the firm for misconduct. The sudden sell-off collapsed the token's price by over 99% from its peak of $1.45, erasing billions in value within days. Movement subsequently discovered Rentech maintained ties to the Chinese market maker Web3Port and launched a token buyback program to stabilize liquidity.
Despite raising $141.4 million across funding rounds, Movement's operational performance has deteriorated sharply. Daily application revenue has remained below $800 since November 2025, with chain fees generating just $8 per day as of the filing date. The first creditor hearing is scheduled for August 20, while the network's total value locked stands near $133 million.