MVMT Laboratoriesoriginal research and development company responsible for the underlying technology Movement Networkrequested restructuring within the scope of Chapter 11 between US Bankruptcy Code. The petition was forwarded to YSK US Bankruptcy Court for Delaware County early July 2026.
According to filing details, the company lists assets in the range of $100,001 to $500,000 and liabilities of up to $10 million. It identifies as many as 299 creditors.
The largest unsecured claim is from the founding partner Rushikesh “Rushi” MancheA total of over $1.6 million. Manche has a 34.25% stake and has won before. Delaware Court of Chancery actions taken to secure advances on associated legal fees US Department of Justice Investigation arising from the events surrounding the project’s token launch.
MVMT Labs played a central role in the development of Transaction Network, an Ethereum Layer 2 block chain Using the Move programming language (originally designed for Meta’s abandoned stablecoin project).
The firm raised significant funding, most notably a $38 million Series A round led by Polychain Capital, before facing major setbacks.
The December 2024 launch of the MOVE token has faced serious challenges due to a market creation agreement with an organization called Rentech that provides control of approximately 66 million tokens (about 5% of the total supply).
Their rapid liquidation tokens It caused a sharp crash in prices upon launch, leading to trading suspensions on major exchanges including Binance and Coinbase.
An internal investigation into the circumstances led to Manche’s departure from the company.
MVMT Labs was subsequently restructured, shifting primary development duties to Move Industries. Torab Torabi.
This transition supported the evolution of the ecosystem towards an independent Layer 1 blockchain focused on financial services for emerging markets.
The Movement Foundation monitored token buybacks and provided on-ramps to investors to support stability. Move Industries stated that this was not part of the bankruptcy process.
Chapter 11 allows MVMT Labs to operate as a debtor while also pursuing a court-supervised path to meet obligations and potentially reorganize for long-term sustainability.
Other notable claims in the filing include Delaware Division of Corporations (approximately $459,000), Move Industries, Anchor Digitaland auditing firm Ottersec.
This filing illustrates the challenges blockchain development companies face amid market volatility. regulator caution and application risks. Observers will monitor transactions for their potential impact on the Move ecosystem and broader adoption of Move-based technologies. case emphasizes The importance of strong internal controls and transparency in high-risk crypto projects.
