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MVMT Labs, the original developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy after disruption tied to MOVE’s market-making controversy and the project’s 2025 restructuring.
The company filed a voluntary Subchapter V petition in the U.S. Bankruptcy Court for the District of Delaware on July 15. Court records list estimated assets of $100,001 to $500,000 and liabilities of $1 million to $10 million.
Bankruptcy Filing Lists Up to 299 Creditors
MVMT Labs reported up to 299 creditors. Its largest unsecured claim belongs to former co-founder Rushikesh “Rushi” Manche, who is listed as being owed more than $1.6 million. Manche retains a 34.25% equity stake in the company.
Other listed creditors include the Delaware Division of Corporations, Move Industries, Anchorage Digital, and security auditor OtterSec. The Delaware agency’s claim is about $459,000.
Creditors Face September 14 Claim Deadline
Subchapter V provides a streamlined Chapter 11 process for eligible small businesses. A creditor meeting is scheduled for August 20.
Creditors have until September 14 to submit proofs of claim. Those dates give MVMT Labs its first confirmed bankruptcy milestones as it begins the restructuring process.
66M MOVE Token Sale Triggered Binance and Coinbase Action
The bankruptcy follows controversy over a market-making agreement connected to MOVE’s December 2024 launch. The arrangement gave an intermediary called Rentech control of 66 million tokens, representing about 5% of the initial supply.
The tokens were quickly sold after launch, contributing to a sharp price decline and about $38 million in market-maker proceeds tied to the activity. Binance banned the market-making account for alleged misconduct. Coinbase later suspended MOVE trading after reviewing the asset against its listing standards.
Movement Removed Manche After External Investigation
Movement commissioned an external investigation into the token-launch controversy. The company terminated Manche in May 2025.
The Movement Network Foundation also announced token buybacks intended to recover assets and support the ecosystem. Those steps came before MVMT Labs entered bankruptcy protection in Delaware.
Move Industries Says Network Remains Outside Bankruptcy
Core blockchain development moved from MVMT Labs to Move Industries after the 2025 restructuring. The separate company has since relaunched Movement as a standalone Layer 1 focused on stablecoin payments, remittances, and financial services in emerging markets.
Move Industries CEO Torab Torabi said his company is not involved in MVMT Labs’ bankruptcy and continues to operate normally. The Chapter 11 case applies to the former development company rather than automatically placing the Movement network or Move Industries under court protection.
The next confirmed step is the August 20 creditor meeting, where MVMT Labs must answer questions about its assets, debts, and restructuring plans.
