MVMT Labs, the company formerly known as Movement Labs and one of the original developers behind the Movement blockchain, has filed for Chapter 11 bankruptcy protection after more than a year of turmoil involving the MOVE token, internal governance and a disputed market-making arrangement.
The company filed its petition in the U.S. Bankruptcy Court for the District of Delaware on July 15. Court documents list assets between $100,001 and $500,000, liabilities ranging from $1 million to $10 million and between 200 and 999 creditors.
Former co-founder Rushi Manche is listed as the largest unsecured creditor, with a claim exceeding $1.6 million. Other creditors include the Delaware Division of Revenue, Anchorage Digital and Move Industries.
The filing confirms the financial collapse of the original development company, but it does not mean the Movement blockchain has shut down. Move Industries is a separate legal entity and became the network’s primary service provider in December 2025, assuming operating responsibilities on behalf of the Movement Network Foundation.
Token Scandal Preceded Corporate Breakdown
Movement launched with substantial financial backing and ambitious plans to combine the Move programming language with Ethereum-compatible infrastructure. The project raised $38 million in a Series A round in 2024 and was subsequently reported to be seeking a valuation of approximately $3 billion.
Its position deteriorated after controversy emerged over a market-making agreement connected to the MOVE token launch. An intermediary reportedly gained control of 66 million MOVE tokens and later sold a large portion into the market, generating approximately $38 million.
Binance froze proceeds associated with the market maker and removed the entity from its platform. Coinbase later suspended MOVE trading, saying the asset no longer met its listing standards. Movement Labs also suspended Manche while an external review examined organizational governance and the company’s relationship with the market maker.
The episode damaged confidence in the project, accelerated the token’s decline and exposed divisions between its founders and associated organizations. MOVE has since fallen more than 94% over the past year, trading near $0.01 around the bankruptcy disclosure.
Network Survives Under Separate Operator
The bankruptcy creates an important distinction between the failed corporate developer and the blockchain ecosystem that continues under the Movement Network Foundation and Move Industries.
Move Industries completed its transition into the network’s primary operator in December and later shifted Movement’s strategy away from directly competing with general-purpose Ethereum layer-2 networks. Its revised focus includes stablecoin settlement, remittances and cross-border payments, supported by payment infrastructure in the United States, Canada and the European Union.
Chapter 11 allows MVMT Labs to remain under court protection while it proposes a restructuring or orderly resolution of creditor claims. The filing does not establish how much creditors will recover or whether the company retains assets connected to the broader MOVE ecosystem.
For tokenholders, the immediate questions concern whether the operational separation is sufficient to protect network development, treasury resources and technical maintenance from the bankruptcy estate.
Movement’s original company has effectively collapsed, but describing the blockchain itself as bankrupt would be inaccurate. The network’s future now depends on whether its replacement operator can rebuild trust, sustain activity and establish a viable payments-focused business after one of the industry’s most damaging token-launch controversies.
