- Movement Labs filed for Chapter 11 bankruptcy.
- Move Industries CEO Torab Torabi clarified that MVMT Labs has no affiliation with Move Industries.
Movement Labs, the original developer behind the MOVE-based Ethereum Layer 2 blockchain, filed for Chapter 11 bankruptcy protection on July 15 under Subchapter V. The court filings, docketed as case number 1:26-bk-11113, and it is assigned to Judge Thomas M. Horan. The list of assets is between $100,001 and $500,000, liabilities between $1 million and $10 million, and between 200 and 999 creditors.
The largest creditors include co-founder Rushi Manche, the Delaware Division of Revenue, and Anchorage Digital. The filing allows Movement Labs to keep operating while restructuring under court supervision. Creditors have until September 14 to file claims.
Move Industries Steps In With Clarity
Torab Torabi, CEO of Move Industries, clarified the situation. Move Industries is the developer team of the Movement ecosystem. MVMT Labs filed for bankruptcy, and MVMT Labs has no affiliation with Move Industries. Further stating that Move Industries is not involved in the bankruptcy process in any way.
Move Industries took over development and operations of the Movement ecosystem from Movement Labs in December 2025 and continues to operate normally. The company describes itself as a global fintech firm with access to live, licensed stablecoin rails, built to close the gap between how money moves and how it should move.
Recently, the court approved interim requests allowing Movement Labs to maintain its bank accounts, cash management systems, and secure debtor-in-possession financing to fund operations during restructuring.
What Led to This Point
The trouble started immediately after the MOVE token launched in December 2024. A market-making deal handed a single counterparty 66 million MOVE tokens, roughly 5% of total supply, which were sold a day after launch. It created an estimated $38 million in downward price pressure and triggered internal investigations.
Binance banned the market maker for misconduct. Co-founder Rushi Manche was suspended in May 2025 over his role in brokering the Web3Port deal and later departed the company. The June 2025 transition toward cross-border payments proved too late to reverse the underlying trend. The bankruptcy filing was the final chapter of a slow and public unravelling.
On the other hand, the token MOVE is currently trading within the $0.01072 range. Significantly, it falls above the asset’s all-time low price of $0.01044, hit two days ago.
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