Movement Labs files for bankruptcy; a $1.6 million claim by the removed founder is the largest debt

PANews July 22日消息, according to The Block, Movement’s former core development company, Movement Labs (MVMT), applied for Chapter 11 bankruptcy protection to the U.S. Bankruptcy Court in Delaware earlier this month. In filings submitted on July 15, the company reported assets between $100k and $500k, liabilities up to $10 million, and listed nearly 299 creditors, including the largest unsecured claim—a more than $1.6 million claim from the ousted co-founder Rushikesh Manche. Manche retains 34.25% equity. Previously, he filed a lawsuit and was supported in connection with legal fees related to a U.S. Department of Justice grand jury investigation concerning the MOVE token issuance scandal.

The company had previously been the core developer of the Ethereum Layer 2 network Movement Network, and completed a $38 million Series A funding round led by Polychain. In December 2024, the MOVE token issuance triggered a crisis after market makers’ sell-off; after an internal investigation, Manche was fired, and the core development work was transferred to Move Industries.