Movement Labs, the former core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware earlier this month, according to The Block. A filing dated July 15 shows the company reported assets of $100,000 to $500,000 and liabilities of as much as $10 million, with nearly 299 creditors listed. The largest unsecured claim, worth more than $1.6 million, belongs to ousted co-founder Rushikesh Manche. The filing adds another turn to the fallout surrounding Movement’s MOVE token launch. Manche still holds a 34.25% equity stake and had previously sued over legal expenses tied to a Department of Justice grand jury investigation related to the token issuance controversy, a case he won support in. Movement Labs had served as the core developer of the Ethereum Layer 2 network Movement Network and had raised $38 million in a Series A round led by Polychain. After the MOVE token launch crisis in December 2024, core development work was shifted to Move Industries.
Movement Labs (MVMT), the former core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy protection earlier this month in the U.S. Bankruptcy Court for the District of Delaware, according to The Block.
Filing shows up to $10 million in liabilities
A court filing submitted on July 15 said the company held between $100,000 and $500,000 in assets, against liabilities of as much as $10 million. The documents listed nearly 299 creditors.
The largest unsecured claim, at more than $1.6 million, was attributed to ousted co-founder Rushikesh Manche.
Manche retains a 34.25% stake
The report said Manche still holds a 34.25% equity stake in the company. He had previously sued over legal costs connected to a Department of Justice grand jury investigation tied to the MOVE token issuance scandal, and he received support in that case.
Development work has moved to Move Industries
Movement Labs was once the core developer for Movement Network, an Ethereum Layer 2 network. The company also completed a $38 million Series A financing round led by Polychain.
In December 2024, the MOVE token launch ran into crisis after market maker selling triggered fallout. Following an internal investigation, Manche was dismissed, and core development responsibilities were transferred to Move Industries.
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