MVMT Labs, the developer behind the Movement Network, filed for Chapter 11 with up to $10M in liabilities. Co-founder Manche holds a $1.6M claim. The MOVE token launch collapse triggered the filing.
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MVMT Labs, the original research and development company behind the Movement Network, filed for Chapter 11 reorganization in the US Bankruptcy Court for the District of Delaware in early July 2026, according to the petition.
Assets are listed between $100,001 and $500,000, with liabilities of up to $10 million. The company identified 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 won a Delaware Chancery Court ruling to secure advancement of legal fees tied to a US Department of Justice investigation related to the project’s token launch.
MVMT Labs developed the Movement Network, an Ethereum Layer 2 blockchain that uses the Move programming language. The firm raised a $38 million Series A round led by Polychain Capital before encountering major setbacks.
The December 2024 launch of the MOVE token ran into trouble because of a market-making agreement that placed control of about 66 million tokens, roughly 5% of total supply, with an entity called Rentech. Quick liquidation of those tokens after the debut caused a steep price collapse and led to trading suspensions on Binance and Coinbase.
An internal investigation into the circumstances led to Manche’s departure. MVMT Labs then shifted primary development to Move Industries, led by Torab Torabi. The transition supported the ecosystem’s evolution into a sovereign Layer 1 blockchain focused on financial services for emerging markets. The Movement Foundation conducted token buybacks and provided investor offramps. Move Industries has stated it is not part of the bankruptcy.
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.
Chapter 11 allows MVMT Labs to operate as a debtor-in-possession while pursuing a court-supervised restructuring. The court will oversee the process.
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