Movement Labs files for Chapter 11 bankruptcy months after token scandal and strategic overhaul

PolicyMovement Labs files for Chapter 11 bankruptcy months after token scandal and strategic overhaulThe filing comes after months of upheaval that included a controversial market-making agreement, an internal investigation into its MOVE token launch, a Binance ban tied to its market maker and a last-ditch pivot from Ethereum scaling to cross-border payments.By Helene Braun, AI Boost|Edited by Nikhilesh DeUpdated Jul 21, 2026, 5:58 p.m. Published Jul 21, 2026, 5:54 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowMovement Labs, the developer of the Movement blockchain, has filed for Chapter 11 bankruptcy.The project came under scrutiny after a market-making deal enabled the rapid sale of 66 million MOVE tokens, triggering a steep price drop and prompting investigations and a token buyback.Movement’s recent pivot toward cross-border payments and stablecoin settlement now faces uncertainty, as the Chapter 11 process leaves the future of its blockchain network, partnerships and payments expansion plans unclear, though operations may continue during restructuring.Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy, marking the latest setback for a crypto project that has spent much of the past year navigating governance disputes, a token market-making controversy and a failed strategic reset.The filing follows months of turmoil for Movement, an Ethereum layer-2 network built using the Move programming language, which was originally developed at Meta. The project launched with the goal of bringing Move-based smart contracts to Ethereum (ETH) while offering faster and cheaper transactions through a scaling network.Its troubles began shortly after the December launch of the MOVE token.An April 2025 CoinDesk investigation found that Movement was examining whether it had been misled into signing a market-making agreement that handed a single coun…

Movement Labs files for Chapter 11 bankruptcy months after token scandal and strategic overhaul

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