MVMT Labs, Inc. filed for Chapter 11 bankruptcy following a turbulent period marked by a controversial token launch and internal governance challenges. The blockchain developer's filing was revealed in court documents accessed by CoinDesk on July 21, 2026.

Background and Company Developments

Founded by Rushi Manche and Cooper Scanlon, MVMT Labs created an Ethereum layer 2 network using the Move programming language originally developed at Meta. Their goal was to enable Move-based smart contracts on Ethereum while enhancing transaction speed and reducing costs. The startup secured $38 million in a Series A funding round led by Polychain Capital in April 2024, adding to a prior $3.4 million pre-seed investment, totaling approximately $41.4 million in disclosed equity financing.

In early 2025, the company sought a Series B round of around $100 million, spearheaded by CoinFund and supported by Brevan Howard’s digital assets division, valuing MVMT Labs at roughly $3 billion. However, problems surfaced after the MOVE token launch. An internal review scrutinized a market-making agreement that allegedly gave intermediary Rentech control over 66 million MOVE tokens. The controversy led Binance to ban the market maker, and co-founder Manche departed the project. MOVE's price plummeted by 99% from its peak, last trading at $0.01.

In May 2025, the firm initiated a management overhaul, establishing Move Industries, a new entity run by former MVMT employees. Under CEO Torab Torabi and President Will Gaines, Move Industries pledged improved governance and transparency, focusing on long-term technological advancement and ecosystem expansion. Recently, the company shifted its focus toward cross-border payments, remittances, and stablecoin settlement, securing licensed payments infrastructure in North America and Europe.

Following the bankruptcy announcement, Torabi clarified that MVMT Labs and Move Industries are separate legal entities, with Move Industries continuing operations as usual. The MOVE token's dramatic decline highlights the challenges faced over the past two years.

This material is for informational purposes only and does not constitute financial advice.