Movement Labs bankruptcy filing shows up to $10 million in liabilities

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Movement Labs bankruptcy filing

Highlights

Movement Labs filed for bankruptcy in Delaware listing $100,001–$500,000 in assets, up to $10 million in liabilities, and 299 creditors.
The largest unsecured creditor is Manche with a $1.6 million claim, while the Delaware Division of Corporations and Move Industries are also significant claimants.
Following the MOVE token launch scandal and exchange suspensions in December 2024, MVMT shifted development to Move Industries and repositioned as a sovereign Layer 1 blockchain for emerging markets.

Delaware filing outlines creditor claims

The bankruptcy case appears in a filing posted on July 15 in the U.S. Bankruptcy Court for the District of Delaware, as first reported by The Block, and covers MVMT Labs, the main research and development company behind the Movement Network.

The company lists between $100,001 and $500,000 in assets and up to $10 million in liabilities. It says it has as many as 299 creditors, with Manche, who still holds a 34.25% equity stake, named as the holder of the largest unsecured claim at more than $1.6 million.

Manche previously sued the company in Delaware Chancery Court and won advancement of legal fees tied to a U.S. Department of Justice grand jury investigation into the MOVE token launch scandal. Other notable claimants include the Delaware Division of Corporations, which is allegedly owed $459,000, as well as Move Industries, Anchorage Digital and auditing firm Ottersec.

Token launch fallout reshapes Movement operations

MVMT Labs serves as the original core developer behind the Movement Network, an Ethereum Layer 2 built on the Move programming language, which was initially developed for Meta's defunct stablecoin project.

The company raised tens of millions of dollars, including a $38 million Series A led by Polychain, before its December 2024 token launch was derailed by a market-making controversy. The dispute centered on an agreement that gave an entity called Rentech control of 66 million MOVE tokens, about 5% of total supply, which were then rapidly sold after launch, triggering a sharp price decline and prompting Binance and Coinbase to suspend trading.

After the scandal, MVMT reorganized its operations and shifted core blockchain development work to Move Industries, led by Torab Torabi. The broader project then pivoted toward becoming a sovereign Layer 1 blockchain focused on financial services in emerging markets, while the Movement Foundation carried out token buybacks in an effort to stabilize the ecosystem.

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