MVMT Labs, the original development company behind the Movement blockchain, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on July 15.
The Subchapter V case lists estimated assets between $100,001 and $500,000, liabilities between $1 million and $10 million and between 200 and 999 creditors. Judge Thomas M. Horan is overseeing the proceedings.
Ousted co-founder Rushikesh “Rushi” Manche holds the largest unsecured claim at more than $1.6 million and retains a 34.25% equity interest in the company. Other creditors include Anchorage Digital and the Delaware Division of Revenue.
The court authorized interim debtor-in-possession financing and allowed MVMT Labs to continue using its existing bank accounts and cash-management systems. Creditors have until Sept. 14 to submit claims, while the company’s Subchapter V restructuring plan is due Oct. 13.
MOVE Market-Making Deal Preceded Filing
The bankruptcy arrives 18 months after Movement Labs pursued a funding round that could have raised $100 million at a $3 billion valuation. The company had previously raised $38 million in a Series A led by Polychain Capital.
Movement’s December 2024 token launch later came under scrutiny over a market-making agreement involving Rentech and Web3Port. Binance identified the sale of approximately 66 million MOVE one day after listing, with the market maker recording a net profit of 38 million USDT. The exchange froze the proceeds, removed the account and barred it from further market-making activity.
An external review examined the agreement and the involvement of company personnel. Movement Labs first suspended Manche during the investigation before terminating his employment in May 2025.
Coinbase also suspended MOVE trading as questions around the token launch and project governance intensified. MOVE traded near $0.011 on Tuesday.
Move Industries Remains Outside Bankruptcy
Move Industries, the company that later assumed development of the Movement ecosystem, is a separate legal entity and is not included in the bankruptcy case.
Chief Executive Torab Torabi said Move Industries was operating normally after the MVMT Labs filing surfaced. The current company has shifted Movement’s focus toward cross-border payments, remittances and stablecoin settlement, while the bankrupt entity proceeds through its court-supervised restructuring.
