Movement Labs files for bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware.
2026.07.22 08:17:50
Movement Labs (MVMT), the original core development firm behind the Movement blockchain, filed for Chapter 11 bankruptcy protection with the U.S. Delaware Bankruptcy Court earlier this month. According to a July 15 court filing, the company reported assets of $100,000 to $500,000 and liabilities of up to $10 million, listing nearly 299 creditors. The largest unsecured claim comes from ousted co-founder Rushikesh Manche, whose claim exceeds $1.6 million. Manche retains a 34.25% equity stake; he previously won a lawsuit seeking legal fees related to a U.S. Department of Justice (DOJ) grand jury investigation into the MOVE token issuance scandal. MVMT was the core developer of the Ethereum Layer 2 network Movement Network, having raised $38 million in Series A funding led by Polychain. In December 2024, a crisis erupted around the MOVE token issuance due to sell-offs by market makers; following an internal investigation, Manche was fired, and core development work was transferred to Move Industries.
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