Movement Labs Files for Bankruptcy — MOVE Token Crashes 94%
We break down the reasons behind Movement’s decision and what’s happening with the MOVE altcoin price.
Movement Labs filed for Chapter 11 bankruptcy on July 15, 2026. The filing involved MVMT Labs, Inc., the original developer of the Movement network.
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Court documents list assets between $100,000 and $1M and liabilities up to $10M. Creditors number between 200 and 999. The largest creditor is co-founder Rushi Manche, with a claim of more than $1.6M. He retained a 34.25% stake in the company.
The MOVE token, the project’s native asset, hit an all-time low of $0.0104, down 94% over the year. At the time of publication, the altcoin trades at roughly $0.01064, down 1.6% on the day.
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How the Market-Making Scandal Sank MOVE: 66 Million Tokens Dumped the Day After Listing
Movement Labs’ problems began after the MOVE token launched in December 2024. A CoinDesk investigation in April 2025 revealed details of a market-making deal that gave one party excessive control over the circulating supply. Internal documents showed the terms allowed 66 million MOVE tokens to be dumped on the market the day after listing, crushing the price.
The dispute centered on Rentech, a middleman in contracts with a Chinese market maker. Binance blocked the market maker’s account for violations and froze about $38M of its profits for potential user compensation.
The fallout was severe. Coinbase halted MOVE trading. Movement Labs launched a token buyback program and brought in independent firm Groom Lake to review the deal. In May 2025, co-founder Rushi Manche was suspended and later fired.
The project’s leadership also signed memos providing up to 10% of MOVE supply to advisors without disclosing it to investors. The company said those documents were not legally binding.
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Move Industries: New Strategy and Shift Away From L2 Competition
After the leadership change, the team created a separate entity, Move Industries, under CEO Torab Torabi. In June 2025, the company announced a strategic pivot: it abandoned competing with other Ethereum L2s and focused on international payments, remittances, and stablecoin settlements. Move Industries claims access to licensed payment infrastructure in the US, Canada, and EU countries.
Torabi denied rumors of the project’s collapse on July 21, saying the MVMT Labs bankruptcy doesn’t affect Move Industries. Still, the market remains unconvinced. MOVE’s market cap is $45M, and the token ranks 454.
The court expects a restructuring plan by October 13, 2026, which could reveal what remains inside the bankrupt entity.
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