Movement Labs files Chapter 11 as MOVE token plunges 99% from peak

MVMT Labs, the developer behind the MOVE blockchain, filed for Chapter 11 bankruptcy on July 15 after its token fell 99 percent from its all-time high.

The Chapter 11 petition, filed in the U.S. Bankruptcy Court for the District of Delaware, listed assets between $100,001 and $1 million against liabilities of $1 million to $10 million, with 200 to 999 creditors, court records show.

MOVE trades at about $0.011, down from its December 2024 peak of $1.45, according to CoinGecko. The collapse followed a disputed market-making deal that dumped 66 million MOVE tokens — roughly 5 percent of the total supply — on launch day, triggering a Binance ban on the account involved and a suspension of trading on Coinbase.

The bankruptcy leaves a $45 million market-cap token with negligible on-chain activity. Daily app revenue has remained below $800 since November, and chain fees fell to $1 over the past 24 hours, per DefiLlama. A restructuring plan is due by Oct. 13, 2026.

Fundraising Couldn't Offset Weak Network Activity

Movement Labs raised an estimated $41.4 million across multiple funding rounds, according to Cryptorank. Yet GitHub commits and contributor growth showed little sustained acceleration, and grants generated only modest user and dApp adoption. The funding primarily extended the project's operating runway rather than strengthening network participation.

The fully diluted valuation of MOVE has fallen more than 99 percent to $107 million, reflecting the gap between capital raised and economic activity generated. Daily active users on the Movement blockchain remained thin throughout its development, with transaction volumes never reaching levels that could support a sustainable fee economy.

Move Industries Distances Itself From Bankruptcy

The remaining team rebranded to Move Industries in May 2025 under CEO Torab Torabi, pivoting toward stablecoin payments for emerging markets this June. Torabi rejected talk of a project collapse on July 21, saying the bankruptcy case does not touch Move Industries' operations and that the company is "full steam ahead."

The court expects a restructuring plan by Oct. 13, 2026, which may reveal what remains inside the bankrupt entity. Suspended co-founder Rushi Manche has also filed a lawsuit in Delaware Chancery court, adding further uncertainty to the project's future. MOVE continues to trade near record lows despite the strategic pivot and token buyback program announced as part of the overhaul.

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