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Movement Labs files for Chapter 11 as Move Industries says it is separate

Movement Labs files for Chapter 11 as Move Industries says it is separate

Delaware bankruptcy filings show MVMT Labs is the only named debtor, while Movement Network entities, Move Industries and the MOVE token remain outside the case as questions center on which assets belong to the estate.

Fact Check
Two independent crypto news outlets confirm the Chapter 11 filing. CoinDesk's primary report directly states Movement Labs filed for Chapter 11 after the token market-making scandal, internal probe, and Binance ban. BeInCrypto adds concrete court details (Delaware case 26-11113, MVMT Labs, Inc., liabilities of $1M-$10M) and confirms the disputed $MOVE market-making deal, governance turmoil (co-founder Manche's suspension/lawsuit), and the pivot to cross-border payments and stablecoin settlement via Move Industries. All causal elements in the claim are corroborated. One minor nuance: the entity filing is precisely 'MVMT Labs, Inc.,' the original developer, while successor entity Move Industries continues operating unaffected.
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Summary

MVMT Labs, the company behind Movement Labs and the original developer of Movement Network, filed for Chapter 11 Subchapter V protection in Delaware on July 15, with a July 22 filing showing an estimated $100,001 to $1 million in assets, $1 million to $10 million in liabilities and 200 to 999 creditors. The bankruptcy currently covers only MVMT Labs in case 26-11113-TMH; Movement Network, Movement Network Foundation, Move Industries, Movement Limited and the MOVE token are not named debtors. The filing has shifted attention to what property and claims actually remain with MVMT Labs after a 2025 operating reorganization that moved core network responsibilities to Move Industries as the Foundation's primary service provider. Move Industries CEO Torab said on July 21 that his company has no affiliation with MVMT Labs and is not involved in the bankruptcy. Court records and transaction documents are likely to determine whether cash, intellectual property, contracts, token interests, legal claims or intercompany balances belong to the estate, while the network remained operational and MOVE continued trading after the petition.

Terms & Concepts
  • Subchapter V: A streamlined Chapter 11 process for smaller businesses that is meant to speed up reorganization.
  • debtor-in-possession financing: Funding sought by a company after filing for bankruptcy to keep operating during the court process.
  • estate: The pool of the debtor's legal and equitable property interests that becomes subject to the bankruptcy case.