MVMT Labs, the original research and development company responsible for the foundational technology of the Movement Network, has filed for reorganization under Chapter 11 of the US Bankruptcy Code. The petition was submitted to the US Bankruptcy Court for the District of Delaware in early July 2026.
According to the filing details, the company lists assets in the range of $100,001 to $500,000 and liabilities of up to $10 million. It identifies as many as 299 creditors.
The largest unsecured claim belongs to co-founder Rushikesh “Rushi” Manche, totaling over $1.6 million. Manche retains a 34.25% equity stake and had previously prevailed in Delaware Chancery Court proceedings to secure advancement of legal fees linked to a US Department of Justice investigation arising from events surrounding the project’s token launch.
MVMT Labs played a central role in developing the Movement Network, an Ethereum Layer 2 blockchain that employs the Move programming language (originally designed for Meta’s abandoned stablecoin project).
The firm secured substantial funding, notably a $38 million Series A round led by Polychain Capital, before encountering major setbacks.
The December 2024 launch of the MOVE token encountered severe difficulties due to a market-making agreement that placed control of approximately 66 million tokens—about 5% of total supply—with an entity referred to as Rentech.
Quick liquidation of these tokens after debut caused a steep price collapse and prompted trading suspensions on major exchanges including Binance and Coinbase.
An internal investigation into the circumstances led to Manche’s departure from the company.
Subsequently, MVMT Labs restructured by shifting primary development duties to Move Industries, led by Torab Torabi.
This transition supported the ecosystem’s evolution into a sovereign Layer 1 blockchain focused on financial services for emerging markets.
The Movement Foundation pursued token buybacks and provided investor offramps to promote stability. Move Industries has stated it is not part of the bankruptcy process.
Chapter 11 allows MVMT Labs to operate as a debtor-in-possession while pursuing a court-supervised path to address obligations and potentially restructure for long-term sustainability.
Additional significant claims in the filing include those from the Delaware Division of Corporations (approximately $459,000), Move Industries, Anchorage Digital, and auditing firm Ottersec.
This filing illustrates the challenges facing blockchain development companies amid market volatility, regulatory attention, and execution risks. Observers will monitor the proceedings for their potential effects on the Movement ecosystem and broader adoption of Move-based technologies. The case emphasizes the importance of strong internal controls and transparency in high-stakes crypto projects.