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MVMT Labs, Inc. has filed for Chapter 11 bankruptcy after a prolonged period of instability that saw the blockchain developer grapple with a disputed token launch, governance issues and a major change in strategy, according to court documents first uncovered by CoinDesk.
Founded by Rushi Manche and Cooper Scanlon, MVMT Labs developed an Ethereum layer 2 network powered by the Move programming language created at Meta, with ambitions to bring Move-based smart contracts to Ethereum while improving transaction speed and costs.
The startup raised a $38 million Series A led by Polychain Capital in April 2024, following a $3.4 million pre-seed round that brought its total disclosed equity financing to about $41.4 million.
According to Fortune, the company later pursued a roughly $100 million Series B in early 2025 led by CoinFund and backed by Brevan Howard’s digital assets arm, valuing the company at around $3 billion.
However, the team became embroiled in controversy after its MOVE token launch, with an internal review scrutinizing a market-making deal that allegedly granted intermediary Rentech control over 66 million MOVE tokens, a CoinDesk investigation in April 2025 found.
The controversy resulted in Binance banning the market maker and co-founder Manche exiting the project. MOVE also experienced a sharp price decline. The token last traded at $0.01, down 99% from its all-time high.
Move Industries says it is separate from bankrupt MVMT Labs
Movement underwent a management overhaul in May 2025 with the creation of Move Industries, a new company formed by former Movement Labs employees to oversee the ecosystem.
Calling the transition “a clean break” following months of controversy, the firm named Torab Torabi as chief executive and Will Gaines as president and chief marketing officer. The new leadership pledged stronger governance, more transparent engagement with the community and tighter oversight, while shifting the project’s focus toward long-term technology development and ecosystem growth.
Movement announced last month that it would shift its focus toward cross-border payments, remittances and stablecoin settlement. It said it had obtained access to licensed payments infrastructure in North America and Europe as part of that strategy.
Following news of the bankruptcy, Torabi clarified in a statement that MVMT Labs is “a separate legal entity” and that Move Industries is “operating normally.”
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.
We continue to…
— Torab (@torabyou) July 21, 2026
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