Woofun AI reports that Movement Labs, the developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection. The entity previously faced scrutiny regarding a market-making agreement that facilitated the rapid offloading of 66 million MOVE tokens, an event that triggered a sharp price decline, subsequent investigations, and a token buyback program.

The company had recently shifted its focus toward cross-border payments and stablecoin settlement services. While operations may continue during the restructuring phase, the long-term status of its blockchain network, existing partnerships, and payment expansion strategies remains undefined amidst the bankruptcy proceedings.