Movement Labs files for Chapter 11 bankruptcy

• Movement Labs filed for Chapter 11 bankruptcy months after a token market-making scandal.
• The company said it will continue operating while it restructures under court protection.
• Movement (CRYPTO:MOVE) will continue through the Movement Network Foundation, which is not part of the filing.

Movement Labs filed for Chapter 11 bankruptcy protection as it works to recover from a token scandal and a major business overhaul.

The filing came months after the company faced criticism over a market-making deal involving Movement (CRYPTO:MOVE) tokens.

The company said the Chapter 11 process gives it time to reorganise while keeping its business running.

Movement Labs said the Movement Network Foundation is separate from the bankruptcy and will continue supporting the blockchain and its community.

The company said it plans to sell assets, settle claims and repay creditors through the court-supervised process.

Movement Labs also said it recently cut staff and changed its leadership as part of efforts to reduce costs.

The company said the restructuring is aimed at preserving value while the Movement ecosystem continues to operate.

At the time of reporting, Movement price was $0.01082.