Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTArjun ParasharTue, July 21, 2026 at 11:38 PM GMT+2 2 min readMovement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection in the U.S. after months of turmoil triggered by its controversial token launch and a failed effort to revive the project.Court filings show MVMT Labs filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on July 15. The company is seeking to restructure under court supervision while continuing operations. Initial hearings have already been held, with creditors required to file claims by Sept. 14.The bankruptcy follows a turbulent year for the project, which was rocked by allegations surrounding its market-making arrangements during the launch of its MOVE token.Related: Circle, Robinhood, Strategy stocks surge on Bitcoin comebackIn May 2025, Movement Labs suspended co-founder Rushi Manche after announcing an independent investigation into a market-maker agreement linked to Rentech and Web3Port. Binance later said the market maker rapidly sold 66 million MOVE tokens, or about 5% of the total supply, contributing to a sharp decline in the token's price. Coinbase also suspended MOVE trading after saying the token no longer met its listing standards.Movement later sought to rebuild investor confidence. Trending on TheStreet Roundtable:Circle, Robinhood, Strategy stocks surge on Bitcoin comeback