The company behind the Move-based layer-2 network collapsed into bankruptcy after a token-dump scandal.
Posted July 22, 2026 at 6:34 am EST.
Movement Labs, the original developer behind the Movement blockchain, filed for Chapter 11 bankruptcy earlier this week, capping an extended period of controversy.
Movement Labs in its filings reported between $100,001 and $500,000 in assets and liabilities of up to $10 million. The company listed co-founder Rushikesh “Rushi” Manche, the Delaware Division of Revenue and Anchorage Digital among its largest creditors.
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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 to be sold into the market one day after the token debuted, contributing to a significant price decline.
The fallout reshaped the Movement Labs. The company in May 2025 separated from Manche after internal investigations. It also transferred responsibility of Movement blockchain’s development to a separate company called Move Industries.
Move Industries last month said it would pivot away from competing with other Ethereum scaling networks and instead focus on cross-border payments, remittances, and stablecoin settlement, claiming access to licensed payment infrastructure in the U.S., Canada, and the European Union.
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AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
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