MVMT Labs files Chapter 11 bankruptcy as MOVE token hits $0.0104 low

MVMT Labs Inc., the original developer behind the Movement blockchain — an Ethereum layer-2 network built on Meta's Move programming language — filed for Chapter 11 bankruptcy in Delaware on July 15, listing assets between $100,001 and $500,000 against liabilities of as much as $10 million, court records show. The MOVE token fell to an all-time low of $0.0104 days after the filing, extending a decline that began with a disputed market-making deal at its December 2024 launch.

"The bankruptcy filing is limited to MVMT Labs and does not affect Move Industries, which took over ecosystem development in May 2025," Torab Torabi, chief executive officer of Move Industries, said in a post on X on July 21. The separate entity has pivoted toward stablecoin payments for emerging markets.

The largest unsecured claim belongs to co-founder Rushikesh "Rushi" Manche at over $1.6 million, according to the filing. Manche, who retains a 34.25% equity stake in MVMT Labs, previously sued the company in Delaware Chancery Court and won advancement of legal fees related to a Department of Justice grand jury investigation into the MOVE token launch. Other notable claimants include the Delaware Division of Corporations, owed $459,000, along with Anchorage Digital and auditing firm Ottersec.

The bankruptcy caps a turbulent period for a project that raised $38 million in a Series A round led by Polychain Capital. MOVE peaked at $1.45 in December 2024 before a market-making agreement gave an entity called Rentech control of 66 million tokens — roughly 5% of the total supply — which were rapidly sold on launch day. The fallout triggered a Binance ban on the account involved, exchange delistings by Coinbase and others, and an internal investigation that led to Manche's termination. Movement Labs hired outside firm Groom Lake to review the events surrounding the deal.

MOVE traded near $0.0108 as of July 21, holding a $45 million market cap at rank 473, according to CoinGecko. Move Industries, which operates independently from the bankruptcy estate, has yet to see markets reward its strategic pivot toward cross-border payments and stablecoin settlement in emerging markets. The court expects a restructuring plan by Oct. 13, which may determine what creditors recover from the bankrupt entity.

This article is for informational purposes only and does not constitute investment advice.