Movement Labs has filed for Chapter 11 bankruptcy, reporting liabilities between $1 million and $10 million while seeking to reorganize.
Movement Labs, also known as MVMT Labs, initiated Chapter 11 bankruptcy proceedings on July 15 in a Delaware court. The firm reported a creditor range of 200 to 999, with assets valued between $100,001 and $500,000, while liabilities are between $1 million and $10 million. A reorganization plan is due by October 13.
On July 20, the court permitted Movement Labs to continue managing its bank accounts and cash flow, and it also received initial approval for debtor-in-possession (DIP) financing, allowing it to sustain operations during the bankruptcy process. MNF DIP SPV Ltd. is the creditor involved in this financing arrangement, having filed a notice of participation on the same day as the bankruptcy filing. Creditors can submit claims until September 14, with a subsequent hearing set for August 27.
Torab Torabi, CEO of Move Industries, clarified that the bankruptcy filing only pertains to MVMT Labs, asserting that Move Industries operates independently and continues normal operations. He stated, "MVMT Labs, Inc. is a separate legal entity, and Move Industries is not part of that filing. We continue to operate normally."
In December 2025, Move Industries became the main service provider for the Movement Network Foundation, overseeing operational management as staff and key functions transitioned under this new structure.
The Movement Network, initially launched as a Layer 2 solution on Ethereum, evolved into a standalone Layer 1 blockchain named M1 by the end of 2025, complete with its own consensus mechanism and MOVE staking.
Prior to the bankruptcy, Movement Labs had been investigating a deal involving a market maker that resulted in a significant sell-off of 66 million MOVE tokens, leading to a notable price drop. Binance intervened by blocking the intermediary’s account and freezing 38 million USDT linked to the MOVE sale. The investigation prompted the suspension of co-founder Rushi Manche in May 2025, who was later terminated amid ongoing inquiries.
Coinbase also suspended trading of MOVE as of May 15, 2025, following its own review of the asset, although it did not directly connect the suspension to the market maker deal.
The MOVE token was initially airdropped in December 2024, with a total supply capped at 10 billion, of which 22.5% was circulated at launch.
