Movement Labs Files for Chapter 11 After MOVE Token Turmoil

Movement Labs, now MVMT Labs, was the original core developer of Movement, an Ethereum Layer 2 network built with the Move programming language. The startup raised a $38 million Series A led by Polychain Capital, but its December 2024 MOVE launch unraveled after a market-making arrangement placed 66 million tokens with an intermediary that rapidly sold them. The fallout triggered investigations, exchange suspensions and a management overhaul, followed by a pivot toward cross-border payments and stablecoin settlement.

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 as much as $10 million and up to 299 creditors. Ousted co-founder Rushikesh “Rushi” Manche holds the largest unsecured claim at more than $1.6 million. Creditors have until Sept. 14 to submit claims, while Move Industries said it is a separate entity, is not included in the filing and continues to operate normally.