Standard crypto agency recordsdata for Chapter 11 after token collapse
Motion Labs, the developer behind the Motion blockchain, has filed for Chapter 11 chapter safety within the U.S. after months of turmoil triggered by its controversial token launch and a failed effort to revive the challenge.
Courtroom filings present MVMT Labs filed for Chapter 11 safety within the U.S. Chapter Courtroom for the District of Delaware on July 15.
The corporate is looking for to restructure below courtroom supervision whereas persevering with operations. Preliminary hearings have already been held, with collectors required to file claims by Sept. 14.
The chapter follows a turbulent 12 months for the challenge, which was rocked by allegations surrounding its market-making preparations through the launch of its MOVE token.
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In Could 2025, Motion Labs suspended co-founder Rushi Manche after saying an unbiased investigation right into a market-maker settlement linked to Rentech and Web3Port.
Binance later stated the market maker quickly bought 66 million MOVE tokens, or about 5% of the whole provide, contributing to a pointy decline within the token’s value. Coinbase additionally suspended MOVE buying and selling after saying the token not met its itemizing requirements.
Motion later sought to rebuild investor confidence.
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In June 2026, the challenge rebranded round a brand new technique targeted on cross-border funds, stablecoin settlement and monetary infrastructure for rising markets, shifting away from its authentic Ethereum scaling ambitions. The challenge additionally introduced token buybacks and investor realignment efforts as a part of the overhaul.
These measures, nevertheless, failed to stop the chapter submitting. MOVE has continued to commerce close to document lows regardless of the strategic pivot.
The token adjustments fingers at about $0.011, in accordance to CoinGecko, down roughly 99% from its all-time excessive of $1.45 reached in December 2024 and about 94% over the previous 12 months.
In line with the Chapter 11 petition, MVMT Labs reported between $100,001 and $1 million in property, $1 million to $10 million in liabilities, and between 200 and 999 collectors.
The voluntary chapter case stays open within the U.S. Chapter Courtroom for the District of Delaware below Decide Thomas M. Horan.
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This story was initially revealed by TheStreet on Jul 21, 2026, the place it first appeared within the MARKETS part. Add TheStreet as a Most popular Supply by clicking right here.
