Movement Labs Files for Bankruptcy Following MOVE Token Turmoil

The bankruptcy filing, submitted on July 15, lists as many as 299 creditors, with former co-founder and CEO Rushikesh “Rushi” Manche holding the largest unsecured claim at $1.6 million. Manche, who was terminated in May 2025, still retains a 34.25% equity stake in the firm. Other notable claimants include the Delaware Division of Corporations, Anchorage Digital, and security auditor OtterSec.

The company’s downfall traces back to its December 2024 token debut, where market-making agreements involving an intermediary named Rentech drew allegations of price manipulation. Internal documents suggested the setup incentivized inflating the token's valuation before offloading supply to retail traders. Binance eventually banned the associated market-making accounts, prompting the Movement Network Foundation to initiate a $38 million repurchase plan while launching an internal investigation.

Despite the legal turmoil, the broader Movement blockchain ecosystem remains active. Move Industries, now led by CEO Torab Torabi, has distanced itself from the bankruptcy, asserting that it remains a distinct legal entity. The firm has since transitioned the project from an Ethereum layer-2 to an independent layer-1 network, focusing on stablecoin payments and cross-border remittances. This restructuring follows a period where the company had previously secured $38 million in Series A funding and flirted with a $3 billion valuation.