$141M Fundraise to $8 Daily Fees: Movement Labs Files for Bankruptcy

Movement Labs has filed for Chapter 11 insolvency safety within the U.S. Bankruptcy Court of Delaware.

This follows months of controversy and a token scandal that left the community coping with main monetary points.

Movement’s Bankruptcy Timeline

In its chapter submitting, the corporate said it has underneath 1,000 collectors, between $100,000 and $500,000 in property, and greater than $1 million in liabilities. The largest unsecured declare, price greater than $1.6 million, belongs to former co-founder Ruhikesh Manche. Other main collectors are the Delaware Division of Revenue and Anchorage Digital.

The agency’s issues began in December 2024, after it launched its MOVE token. But shortly after its debut on Binance, some $66 million price of the tokens have been dumped onto the market as a part of a market-making cope with Rentech. This sudden improve in provide led to its value tumbling and worn out billions of {dollars} in worth inside days.

Binance later banned Rentech for misconduct, accusing it of promoting the whole stash simply at some point after the itemizing whereas inserting only a few purchase orders. According to the change, the market maker earned a revenue of $38 million earlier than it eliminated it from its platform on March 18.

Movement then launched a token buyback program in response to repurchase MOVE tokens and restore liquidity to the ecosystem. It additionally contracted Groom Lake to overview its cope with Rentech, after which it was found that it had ties to the Chinese market maker Web3Port, in the end main to the dismissal of Manche over the scandal.

Per the chapter submitting, the primary creditor listening to is scheduled for August 20.

From $141M to $8 in Daily Fees

Interestingly, Movement had raised a complete of $141.4 million throughout a number of funding rounds, together with a Series A led by Polychain Capital. On paper, that stage of funding ought to have supplied the mission with some monetary stability, however the community’s on-chain exercise tells a special story.

DeFiLlama knowledge exhibits its each day app income has been lower than $800 since November 2025. The mission’s chain charges have additionally stayed within the single digits for months, with returns for the final 24 hours at simply $8 per the identical supply.

MOVE hit a brand new all-time low on July 20, after a stormy few months the place it went from about $0.041 in January to $0.01043 two days in the past. At the time of writing, it had moved lower than 2% from the all-time low, with its new stage representing a plunge of over 99% from its all-time high of $1.45, in accordance to CoinGecko knowledge. Meanwhile, the community’s Total Value locked (TVL) sits at roughly $133 million.

Movement was initially made to hyperlink blockchains constructed on its Move programming language with Ethereum. But the layer-2 community introduced in June that it could be pivoting towards cross-border funds, remittances, and dollar-saving merchandise.

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