Move Industries

The original developer of the Movement blockchain filed for Chapter 11 bankruptcy on July 15, 2026, triggering a 94% year-to-date collapse in the MOVE token to an all-time low of $0.0104. Institutional investors face a critical unknowable: whether the restructuring plan due October 13 reveals that the separate operating entity, Move Industries, can survive independently or whether the legal separation holds under creditor pressure.

• MVMT Labs filed voluntary Chapter 11 bankruptcy in Delaware listing $1-10 million liabilities against $100,001-$1 million in assets.
• MOVE token fell to $0.0104 all-time low, down 94% over the past year from a December 2024 peak of $1.45.
• Move Industries, the separate operating company, asserts it is unaffected and continues development; court restructuring plan due October 13 will test that claim.

• $0.0104 MOVE token all-time low price reached after bankruptcy filing announcement.
• 94% MOVE token decline over the past twelve months against prior peak.
• October 13 Deadline for MVMT Labs bankruptcy restructuring plan filing with court.

MVMT Labs, Inc., the original developer of the Movement blockchain, filed for voluntary Chapter 11 bankruptcy in the U.S. District of Delaware on July 15, 2026, immediately triggering a sharp selloff in the MOVE token. The token fell to an all-time low of $0.0104, extending its year-to-date decline to 94% from a December 2024 peak of $1.45.

The collapse reflects not only the bankruptcy filing itself but also a succession of technical and market failures dating back to the token’s chaotic launch, including a disputed market making arrangement that dumped 66 million tokens into circulation and forced delistings from major exchanges.

MOVE now trades near $0.0108 with a market capitalization of $45 million, placing it at rank 473 by market value.

The bankruptcy petition, filed under Subchapter V, a streamlined Chapter 11 track for small businesses, lists liabilities between $1 million and $10 million against assets of $100,001 to $1 million, with creditors numbering between 200 and 999.

MVMT Labs Bankruptcy Exposes the Cost of a Flawed Token Launch

The decline in MOVE did not begin with the bankruptcy announcement. The token’s problems trace directly to its launch day in 2024, when a disputed market making arrangement flooded the market with 66 million newly minted MOVE tokens, crushing the price from its listing level and creating immediate losses for retail investors who entered at or near the peak.

That episode triggered a market maker misconduct investigation, led to a Binance ban of the account involved, and forced delistings from multiple exchanges, each event compounding the loss of institutional confidence in the project’s management and governance.

The bankruptcy filing now sits before Judge Thomas M. Horan in the District of Delaware as Case 26-11113. Court records show the estate to be a fraction of the original project’s scale, with liabilities outweighing disclosed assets by at least one order of magnitude.

The court expects a restructuring plan by October 13, 2026, which will detail whether MVMT Labs can be reorganized, merged, liquidated, or dissolved. That plan will be the first public window into what assets and claims remain inside the bankrupt entity, a detail that institutional creditors and MOVE token holders have been left to speculate about in the interim.

The bankruptcy filing has also reignited legal conflict among the project’s leadership. MVMT Labs faces a separate Delaware Chancery lawsuit from suspended co-founder Rushi Manche, which adds litigation risk and potential complexity to any restructuring. No settlement or ruling has been publicly disclosed, leaving the founder dispute unresolved heading into the October plan deadline.

Move Industries Claims Operational Separation and Continuity Under Torab Torabi

Move Industries, a distinct legal entity that assumed ecosystem development in 2025 under CEO Torab Torabi, explicitly stated on July 21 that the MVMT Labs bankruptcy filing does not affect its operations.

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.

Torab Torabi, CEO of Move Industries

The separation between MVMT Labs (the bankrupt developer) and Move Industries (the operating entity) was formalized in May 2025 when the remaining technical team rebranded and shifted strategic focus away from token speculation toward stablecoin payments for emerging markets.

That pivot, announced in June 2026, was positioned as a move toward sustainable use cases rather than speculative price appreciation.

However, markets have so far refused to grant Move Industries credit for the separation: the MOVE token has not recovered since the bankruptcy announcement, and trading volume has reflected deep skepticism about whether the two entities can truly operate independently or whether creditors and courts will view Move Industries as part of the same enterprise.

Torabi’s public assertion of continuity carries weight, it is concrete and tied to a named CEO making an explicit operational claim, but it is not yet market-validated. MOVE holds a $45 million market cap at rank 473 on CoinGecko, a tiny fraction of the liquidity required to absorb institutional redemptions or creditor claims.

The price action over the coming weeks will reveal whether sophisticated traders believe the separation thesis or whether they view Move Industries as merely a subsidiary or continuation of a failing project.

October 13 Restructuring Plan Will Test the Separation Claim and Shape Creditor Recovery

The critical institutional question is whether the October 13 restructuring plan will confirm that Move Industries truly operates as a separate legal entity with its own assets, revenue, and balance sheet, or whether discovery and court proceedings will expose it as an affiliate of the bankrupt MVMT Labs estate.

If Move Industries is found to be substantially controlled by MVMT Labs, or if its assets are deemed property of the estate, creditors may have claims against it. If it is genuinely separate, MOVE token holders may face a clean but devastating outcome: the token belongs to a shell with minimal assets, while the operating blockchain continues under different ownership.

The restructuring plan will also shed light on how much of the original token allocation, and whether any MOVE tokens themselves, are held by the estate or claimed as property of creditors. It is not yet clear whether MOVE tokens constitute property of the bankruptcy estate or whether they are purely speculative instruments held by public markets.

That distinction will determine whether the bankruptcy process directly constrains token supply or whether the outcome is confined to corporate assets and cash.

Institutional investors should also monitor whether any acquisition or merger proposal emerges before October 13, as restructuring Chapter 11 cases often attract bidders and stalking-horse transactions.

The October 13 deadline for the restructuring plan is the firm next checkpoint. Until that filing, the market operates on assertion rather than fact: Torabi has publicly claimed operational separation, but the court and creditors will determine whether that claim holds. Institutional investors should track whether the plan treats Move Industries as a separate debtor, whether any claims are filed against Move Industries assets or revenue, and whether Manche’s suspended co-founder lawsuit produces any settlement or ruling that alters the corporate structure. The plan will also establish the timeline for any distribution to creditors, a figure that will determine whether MOVE token holders face total loss or whether any recovery is possible from the estate.