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.

This story is an excerpt from the Unchained Daily newsletter.

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.

Related Listen: The Chopping Block: Is Strategy the Luna for Suits?, ETH Labs Shakeup & CME vs Perps