Movement Labs Files for Chapter 11 After MOVE Token Scandal

Movement Labs, now known as MVMT Labs, was the original core developer of Movement, an Ethereum Layer 2 network built around the Move programming language. Its decline accelerated after a disputed market-making agreement allocated 66 million MOVE tokens to a market maker that later sold them, reportedly generating about $38 million in selling pressure. The fallout led to an internal investigation, leadership upheaval and exchange delistings, undermining confidence in a project once valued in the billions.

MVMT Labs filed for Chapter 11 protection under Subchapter V in the U.S. Bankruptcy Court for the District of Delaware on July 15, 2026. The petition listed assets of $100,001 to $500,000, liabilities of $1 million to $10 million and 200 to 999 creditors. Ousted co-founder Rushikesh “Rushi” Manche holds the largest unsecured claim at more than $1.6 million. Move Industries, a separate entity that shifted toward cross-border payments and stablecoin settlement in June, said its operations and the Movement network are not part of the bankruptcy case.