Movement Labs, developer of the MOVE token and the Movement blockchain, filed for Chapter 11 bankruptcy in Delaware, marking a turning point after a year of governance disputes and a token-market-making scandal. Reports tie a 2025 MOVE token scandal to a market-maker arrangement that allowed substantial selling pressure, contributing to a sharp price decline. The company had previously seen co-founder Rushi Manche depart in May 2025 and subsequently pursued a strategic overhaul in June 2026 to pivot toward global payments and stablecoin services rather than competing in Ethereum’s layer-2 space. Move Industries, the separate entity stewarding the ecosystem, says it remains unaffected by the bankruptcy and continues development. Movement’s project, built on the Move language and originally developed at Meta, aimed to bring Move-based smart contracts to Ethereum with faster, cheaper transactions before the collapse. The filing comes after months of turmoil and a strategic overhaul as the project seeks to restructure and stabilize for a more secure future.