Movement (MOVE) is facing one of the biggest setbacks in its short history after Movement Labs, the company behind the blockchain project, filed for Chapter 11 bankruptcy in the United States.
The bankruptcy filing comes after months of declining network activity, governance issues, and a sharp drop in the token’s value.
Despite raising more than $141 million from investors, the project failed to build enough on-chain demand to support its long-term growth.
The bankruptcy filing has added to the pressure on MOVE token, which is now trading close to its all-time low after losing more than 99% of its value from the record high reached in December 2024.
Movement Labs enters Chapter 11 after months of financial strain
Movement Labs filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware under Subchapter V, a restructuring process designed for qualifying small businesses.
Court documents show that the company listed assets between $100,001 and $1 million, while liabilities were estimated at between $1 million and $10 million.
The filing also indicated that the company has between 200 and 999 creditors, highlighting the scale of its financial obligations.
The bankruptcy marks a significant turning point for a project that had attracted strong investor interest during its early stages.
Movement Labs raised a combined $141.4 million in funding, but that financial backing did not translate into sustainable ecosystem growth.
Move Industries continues operations despite bankruptcy filing
The Chapter 11 filing applies to MVMT Labs, the original developer behind the Movement blockchain.
However, Move Industries has stated that it is a separate legal entity and is not included in the bankruptcy proceedings.
According to Torab Torabi, Chief Executive Officer of Move Industries, the company continues to operate independently and remains focused on developing the ecosystem.
Move Industries has also shifted its strategic direction toward stablecoin payments and cross-border payment infrastructure, particularly for emerging markets.
The company has indicated that development work will continue despite the financial restructuring involving Movement Labs.
Weak network activity overshadowed significant fundraising
While Movement Labs secured more than $141.4 million in funding, the blockchain struggled to generate meaningful economic activity.
Data from the network showed that daily application revenue remained below $800 since November.
At the same time, daily on-chain fees stayed in the single digits for months, with only $1 recorded over the most recent 24-hour period.
Those figures reflected limited user activity despite the project’s substantial financial backing, and the Movement (MOVE) token’s valuation has also fallen sharply.
MOVE currently has a fully diluted valuation (FDV) of approximately $106.3 million, compared with an all-time high token price of $1.45 reached on December 9, 2024.
Notably, the MOVE token launch was followed by controversy surrounding a market-making agreement, investigations into token sales, legal disputes involving former co-founder Rushi Manche, and actions taken by Binance against a related market-making account.
The token has since lost more than 99.3% of its value.
At the time of writing, MOVE is changing hands at around $0.01063, after falling 1.9% over the previous 24 hours.
During that period, the token traded between $0.01062 and $0.01094, remaining only slightly above its all-time low of $0.01043, which was recorded on July 20, 2026.
MOVE token under pressure after losing more than 99%
MOVE has fallen 94.1% over the past year, 10.1% over the last 30 days, and 6.3% during the past two weeks.
Over the previous seven days, the token declined 1.7%, while the latest 24-hour session recorded another 1.9% loss.
The combination of weak network usage, declining token value, governance challenges, and the Chapter 11 filing has placed the project under intense scrutiny.
Although Move Industries has confirmed that it will continue operating independently, the market is now closely watching whether the ecosystem can rebuild activity after one of the most significant corporate setbacks in the project’s history.
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