Movement Labs Files for Bankruptcy Amid MOVE Token Scandal Fallout
Movement Labs, a company behind the Ethereum Layer 2 network Movement, has filed for bankruptcy in Delaware. The move comes after a token scandal in 2024, where the price of MOVE tokens plummeted due to a large sale by one of the firm's market makers.
The bankruptcy filing shows assets between $100,001 and $500,000, while estimated liabilities range from $1 million to $10 million. Co-founder Rushikesh 'Rushi' Manche has the largest unsecured claim at more than $1.6 million.
However, Move Industries, a splinter firm founded by other members of the Movement Labs team in May 2025, claims it is not affected by the filing. CEO Torab Torabi said that MVMT labs filing for bankruptcy impacts them 'the same way Tesla filing for bankruptcy would impact us…not at all.'