Movement Labs files for Chapter 11 months after token scandal

Share This Post

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 counterparty unusual influence over MOVE’s circulating supply. Internal documents reviewed by CoinDesk at the time showed the arrangement allowed 66 million MOVE tokens to be sold into the market one day after the token debuted, contributing to a sharp decline in price.

The controversy centered on Rentech, a little-known intermediary that appeared in contracts connected to Chinese market maker Web3Port. According to documents obtained by CoinDesk, Movement executives later questioned whether the foundation believed Rentech was affiliated with Web3Port when it was not. Rentech has denied any wrongdoing or misrepresentation.

The fallout extended beyond Movement. Binance banned the market-making account involved in the token launch for what it described as misconduct, while Movement launched a token buyback program and hired outside firm Groom Lake to review the events surrounding the deal.

Movement Labs and co-founder Rushi Manche separated in May 2025.

More recently, the company attempted to chart a new course.

In June, Move Industries, a separate legal entity from MVMT Labs, the company that filed for bankruptcy, announced it would pivot away from competing with other Ethereum scaling networks and instead focus on cross-border payments, remittances and stablecoin settlement. The company said it had secured access to licensed payment infrastructure in the U.S., Canada and the European Union as it sought to build services aimed at emerging markets.

Related Posts

Ukrainian police took down a crypto scam that stole up to $1 million a month

Investigators have identified 62 victims and say more than...

Prediction markets inch closer to the Supreme Court: State of Crypto

New Jersey petitioned for a writ of certiorari in...

Better and Coinbase’s bitcoin-backed mortgages can reuse borrowers’ collateral

Better Mortgage can reuse the pledged bitcoin, and borrowers...

AMC CEO blasts Robinhood for stock token, putting synthetic shares in spotlight

Adam Aron said AMC has no connection to Robinhood’s...

Bitcoin back above $81,000 as hike odds fade, Zcash leads with 15% jump

Every major token gained on Friday as traders cut...