MVMT Labs, Inc., the developer behind the Movement blockchain, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on July 15. The case, number 26-11113, was assigned to Judge Thomas M. Horan and lists liabilities of $1 million to $10 million, assets between $100,001 and $1 million, and somewhere between 200 and 999 creditors.

The San Francisco company filed under Subchapter V, the streamlined small-business track designed to let a firm keep operating while it renegotiates debts under court oversight. Potter Anderson & Corroon LLP is handling the representation. A creditors' meeting is set for August 20, with proof-of-claim filings due by September 14.

As CoinDesk first reported, the largest creditors include co-founder Rushi Manche, the Delaware Division of Revenue, and crypto custodian Anchorage Digital.

A Token Launch That Went Wrong Fast

Movement started life as an Ethereum layer 2 built on Move, the programming language Meta originally developed for its abandoned Diem project. The MOVE token launched in December 2024. Within months, an April 2025 CoinDesk investigation revealed that 66 million MOVE tokens had been sold into the market just one day after the token debuted, contributing to a steep price drop. At the center of the arrangement was Rentech, an intermediary linked to Chinese market maker Web3Port. Rentech has denied any wrongdoing. Binance banned the market-making account tied to the launch, citing misconduct. Movement responded with a token buyback program and brought in investigations firm Groom Lake to review the deal.

Manche was separated from Movement Labs in May 2025. He later sued the startup in Delaware court. According to court documents, the company believed it may have been misled into signing a market-making agreement that gave a single counterparty outsized control over MOVE's circulating supply.

The token is now trading around $0.0108, per CoinGecko data from July 21, down roughly 8% over the past month and about 99% below its all-time high of $1.45 reached on December 10, 2024. Market cap sits near $45 million, placing MOVE around 474th by that measure.

This article is for informational purposes only and does not constitute financial or investment advice.