Movement Labs files for bankruptcy after MOVE token scandal and Binance delisting

Movement Labs, the blockchain firm behind the MOVE token, filed for Chapter 11 bankruptcy protection Tuesday, the culmination of a year dominated by a botched market-making deal, a Binance delisting, and an internal probe into its token launch.

The filing in the U.S. Bankruptcy Court for the District of Delaware did not list specific asset or liability totals, but described the company as unable to service its debt. Movement Labs said it intends to use the Chapter 11 process to "maximize value for stakeholders," though it acknowledged that a sale of assets or a reorganization plan are both on the table.

The troubles trace back to early 2026. Movement Labs had signed a market-making agreement with a firm that later came under fire for manipulating MOVE's price. Binance, the largest crypto exchange by volume, banned that market maker and subsequently delisted MOVE, citing "market integrity concerns." The delisting wiped out the token's primary liquidity venue.

An internal investigation by Movement Labs' board found that the market-making deal had not been properly disclosed to investors and that some tokens had been allocated improperly. The company replaced its founding team and installed a new CEO in April.

That new leadership attempted a strategic pivot – shifting from building a layer-2 scaling solution for Ethereum to a cross-border payments network. The move was meant to generate revenue quickly, but the filing indicates it came too late. "The pivot did not achieve the necessary commercial traction," the company said in its petition.

MOVE token holders now face an uncertain recovery. In a Chapter 11 case, tokens are typically treated as unsecured claims, meaning they rank behind secured creditors and administrative expenses. The court will need to rule on how to value the tokens, given their near-zero trading volume post-delisting.

A first-day hearing is expected within the week to approve cash collateral use and interim financing. Creditors have until late September to file proofs of claim. For now, Movement Labs' biggest remaining asset is its intellectual property around the payments network – but with no active customers disclosed, that IP may fetch a fraction of the venture capital it once raised.

The next key date is the August 15 status conference, where the judge will assess the company's progress on a potential sale or reorganization plan.