Movement Labs Files for Chapter 11 Bankruptcy as MOVE Token Collapses 99%

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• Movement Labs, the original developer of the Movement blockchain, has filed for Chapter 11 bankruptcy in the United States.
• Movement chain activity remains subdued, with daily app revenue staying below $800 since November and just $1 in on-chain fees over the past 24 hours.
• The project previously raised $141.4 million, while the MOVE token’s fully diluted valuation (FDV) has fallen to around $107 million, more than 99% below its all-time high.
• DeFiLlama data shows the network currently holds $134.12 million in total value locked (TVL), alongside $38.95 million in stablecoin market capitalization.

Movement Labs Enters Chapter 11 Bankruptcy

Movement Labs, the original development company behind the Movement blockchain ecosystem, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The filing marks the latest development following months of governance challenges, the MOVE token controversy, and continued operational difficulties.

Court records show the voluntary petition was filed on July 15, 2026, under Subchapter V, a restructuring process designed for qualifying small businesses. The filing reported assets ranging from $100,001 to $500,000 and liabilities of up to $10 million, with hundreds of potential creditors listed in the case. The bankruptcy process allows the company to continue restructuring under court supervision while creditor proceedings move forward.

The Chapter 11 filing follows months of challenges for the Movement ecosystem, including controversy surrounding the MOVE token’s market-making activities, an internal investigation, Binance’s suspension of a related market-making account, and the departure of Movement Labs co-founder Rushi Manche in May 2025. The bankruptcy marks the latest development in a series of events that have affected the project’s operations and market performance.

On-Chain Metrics Reflect Continued Weak Network Activity

Beyond the legal and governance developments, blockchain data indicates that user activity on the Movement network has remained limited despite the project’s substantial venture funding.

According to the data, daily application revenue on the Movement chain has remained below $800 since November last year. On-chain fees have also stayed in the single digits for months, with only $1 generated during the latest 24-hour period.

The latest network metrics show:

• Total Value Locked (TVL): $134.12 million
• Stablecoin Market Capitalization: $38.95 million
• 24-hour DEX Volume: $124,326
• MOVE Market Capitalization: $44.66 million
• MOVE Fully Diluted Valuation (FDV): $107.19 million

These figures indicate that network activity has remained subdued even as the blockchain continues to maintain over $134 million in total value locked.

At the time of writing (5:28 AM UTC), the MOVE token was trading at $0.01073, down 0.1% over the previous 24 hours, according to CoinMarketCap. The relatively muted price movement came as markets continued to assess the implications of Movement Labs’ Chapter 11 bankruptcy filing.

Funding Contrasts With Current Token Valuation

Movement attracted significant investor backing during its development, raising a cumulative $141.4 million across funding rounds. However, the project’s current on-chain metrics and token valuation contrast sharply with the scale of its fundraising, reflecting significantly lower ecosystem activity than during its early growth phase.

The MOVE token’s fully diluted valuation now stands at $107 million, representing a decline of more than 99% from its all-time high valuation. The decline has occurred alongside weakening on-chain activity and follows a series of governance and operational challenges that culminated in the developer’s Chapter 11 filing.

Although the bankruptcy filing applies to Movement Labs rather than the Movement blockchain itself, it marks a significant development for the ecosystem. The restructuring process comes as the network continues to experience limited on-chain activity and follows months of governance, operational, and market-related challenges.

The Movement Labs filing adds to a series of crypto industry bankruptcies in 2026. In March, crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware following a liquidity crisis. In May, bitcoin ATM operator Bitcoin Depot also sought Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas, citing mounting regulatory pressures and plans to wind down operations.