MVMT Labs, known as Movement Labs, filed for Chapter 11 reorganization on July 15. The case is being handled by a court in Delaware, according to the registry.

In its filings, Movement Labs reported having between 200 and 999 creditors. The company estimated its assets at $100,001 to $500,000, with liabilities ranging from $1 million to $10 million. It must submit a reorganization plan by October 13.

On July 20, the court allowed Movement Labs to maintain its bank accounts and current cash management system. The company also received preliminary approval for debtor-in-possession (DIP) financing to operate during bankruptcy.

The creditor in this arrangement is MNF DIP SPV Ltd., whose representatives filed a notice of participation on the same day Movement Labs went to court. Claims will be accepted until September 14, with the next hearing scheduled for August 27.

Torab Torabi, head of Move Industries, emphasized that the filing pertains only to MVMT Labs. He stated that Move Industries is a separate legal entity and continues to operate as usual.

You may have seen the news about the Chapter 11 filing by MVMT Labs, Inc. on July 15th.

Two things worth saying clearly:

1 - MVMT Labs, Inc. is a separate legal entity, and Move Industries is not part of that filing.

2 - Move Industries is operating normally.

We continue to…

— Torab (@torabyou) July 21, 2026

In December 2025, Move Industries became the primary service provider for the Movement Network Foundation and took over the operational management of the ecosystem. Staff and key functions transitioned to the new structure.

The Movement Network was initially developed as a Layer 2 solution on Ethereum. However, by the end of 2025, the project completed its transition to a standalone Layer 1 blockchain, M1, featuring its own consensus mechanism and MOVE staking.

The Movement Network Foundation retained its role as an independent manager of the ecosystem, while Move Industries is responsible for the development, operation, and growth of the network on its behalf.

In April 2025, the Movement Labs team began investigating the circumstances surrounding a deal with a market maker that led to a dump of 66 million MOVE and a subsequent drop in the asset's price shortly after its listing. According to CoinDesk, the intermediary Rentech received 66 million MOVE, which accounted for 5% of the token's supply.

Prior to the investigation's publication, Movement Network had already begun examining the "market maker anomaly." Binance blocked the intermediary's account and froze 38 million USDT received from the sale of MOVE.

On May 2, Movement Labs suspended co-founder Rushi Manche pending an independent investigation. On May 7, the company terminated him and announced a leadership change.

As of May 15, Coinbase suspended trading of MOVE following another review of the asset. The exchange stated that it regularly assesses tokens for compliance with its listing standards but did not directly link the decision to the market maker deal.

We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on recent reviews, we will suspend trading for Movement (MOVE) on May 15, 2025, on or around 2 PM ET.

— Coinbase Assets 🛡️ (@CoinbaseAssets) May 1, 2025

For context, the genesis airdrop of the MOVE token occurred in December 2024, with a maximum supply of 10 billion MOVE. At launch, 22.5% was released into circulation.