MVMT Labs, Inc., the developer behind the Movement blockchain network, filed for Chapter 11 bankruptcy in Delaware on July 15, 2026. Following the news, the MOVE token fell to an all-time low of $0.0104.
Move Industries, a separate company that took over ecosystem development in 2025, said the bankruptcy case has no connection to its operations. MOVE is currently trading near $0.0108 and has lost around 94% of its value over the past year.
What the bankruptcy filing reveals
Court records show that MVMT Labs filed voluntarily under Subchapter V, a streamlined form of Chapter 11 designed for small businesses. Judge Thomas M. Horan is overseeing the case in the District of Delaware.
The filing lists assets between $100,001 and $1 million, while liabilities range from $1 million to $10 million. The company estimates that it has between 200 and 999 creditors.
The largest creditors include co-founder Rushi Manche, the Delaware Division of Revenue and Anchorage Digital.
Those figures underline the scale of the collapse. MOVE traded as high as $1.45 in December 2024, shortly after its launch. Its price has since fallen by more than 99%.
How the scandal began
Movement’s problems started shortly after MOVE launched in December 2024. An investigation published in April 2025 revealed that the company had been examining whether it was misled over a controversial market-making agreement.
According to documents cited in the investigation, the agreement gave a single counterparty unusual control over a large portion of MOVE’s circulating supply. Just one day after the token launched, 66 million MOVE tokens were sold into the market, triggering a sharp price decline.
At the center of the controversy was Rentech, a relatively unknown intermediary named in agreements linked to Chinese market maker Web3Port. Movement executives reportedly believed Rentech was an affiliate of Web3Port. They later discovered that no such relationship existed.
Rentech has denied making any false representations.
The fallout soon spread beyond Movement itself. Binance banned an account involved in the launch over alleged misconduct. Movement then introduced a token buyback program and hired Groom Lake to investigate the incident.
Co-founder Rushi Manche left the company in May 2025. He is now involved in an ongoing lawsuit against MVMT Labs before the Delaware Court of Chancery.
Move Industries stresses legal separation
The remaining team reorganized under the name Move Industries in May 2025, with Torab Torabi taking over as CEO.
The company changed its strategy the following month. Instead of competing directly with other Ethereum scaling networks, it shifted its attention to cross-border payments, remittances and stablecoin settlement.
Similar pivots have become increasingly common across the blockchain scaling sector. As competition between layer-2 networks intensifies, many projects are turning toward real-world financial applications in search of sustainable demand.
Torabi addressed the bankruptcy filing on social media on July 21. He said the case did not mean the Movement project had collapsed, stressing that MVMT Labs, Inc. and Move Industries are separate legal entities.
He also said Move Industries continues to operate normally.
The market has shown little confidence in that distinction so far. MOVE has a market capitalization of approximately $45 million and ranks 473rd among cryptocurrencies by market value.
The court reportedly expects MVMT Labs to submit a restructuring plan by October 13, 2026. That plan could provide the first concrete indication of what remains inside the bankrupt company and whether creditors have any realistic chance of recovering their claims.
