The development company behind Movement filed for bankruptcy, with a $1.6 million claim as the largest creditor.

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ME News message, July 22 (UTC+8). According to The Block, Movement Labs (MVMT), the former core development company behind the Movement blockchain, has applied for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware earlier this month.

According to a filing submitted on July 15, the company reported assets between 100,000 and 500,000 dollars, with liabilities reaching up to 10 million dollars. The filing lists nearly 299 creditors, including the largest unsecured claim: a more than 1.6 million dollar claim by the ousted co-founder Rushikesh Manche. Manche retains 34.25% equity. Previously, he filed a lawsuit and was supported over legal fees related to a Department of Justice (DOJ) grand jury investigation tied to the MOVE token issuance scandal.

The company was previously the core developer of Movement Network, an Ethereum Layer 2 network, and completed a 38 million dollar Series A round led by Polychain. In December 2024, the MOVE token issuance crisis was triggered by market makers’ selloffs. After an internal investigation, Manche was dismissed, and the core development work has been transferred to Move Industries. (Source: The Block)

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