MOVE-ment Labs Hits Chapter 11: Creditors Include Its Own Ex-CEO 🏀

Movement Labs, the original developer behind the Move blockchain, has filed for Chapter 11 bankruptcy in the United States, according to court filings reviewed this week. The filing lists assets of up to $500,000 against liabilities exceeding $1 million, and names co-founder and former CEO Rushi Manche among the creditors. Manche departed the company last year.

The bankruptcy comes after a turbulent period for the MOVE token ecosystem, which was restructured amid controversy. In 2024, allegations surfaced that Movement Labs had promised roughly 10% of the MOVE token supply to early insiders, a disclosure that coincided with a sharp decline in the token's price. Separately, a market-making arrangement involving 66 million MOVE tokens sold after launch drew scrutiny. Binance subsequently banned the market maker in question and froze the associated profits.

Movement Labs had been the principal development team behind the Move programming language's blockchain implementation. The restructuring and bankruptcy filing mark a sharp reversal for a firm that had positioned itself at the center of the Move-based ecosystem. The MOVE token was trading flat on the day of the news, even as the broader crypto market rallied.

Court documents indicate that the proceedings will proceed under Chapter 11, allowing the company to continue operating while it works through its financial obligations to creditors. The filings did not specify a timeline for a reorganization plan.

The case adds to a string of high-profile setbacks tied to token launch practices and undisclosed insider allocations that have drawn regulatory and exchange attention across the crypto industry over the past year.