Movement Labs, the original core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy earlier this month in the U.S. Bankruptcy Court for the District of Delaware, according to a post that surfaced on Tuesday.
In the filing, posted on July 15, the company reported assets between $100,001 and $500,000 and liabilities of up to $10 million. It listed up to 299 creditors, with the largest unsecured claim belonging to co-founder Rushikesh “Rushi” Manche at over $1.6 million.
Manche, who retains a 34.25% equity stake, previously sued the company in Delaware Chancery Court and won advancement of his legal fees related to a DOJ grand jury investigation into a MOVE token launch scandal.
MVMT Labs was the primary R&D firm behind the Movement Network, an Ethereum Layer 2 built on the Move programming language, which was developed initially for Meta’s defunct stablecoin project.
The company raised tens of millions, including a $38 million Series A led by Polychain, before its December 2024 (MOVE) token launch was derailed by a major scandal.
