Movement Core Developer Files for Bankruptcy with $1.6M Largest Claim

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Movement Core Developer Files for Bankruptcy with $1.6M Largest Claim Movement Labs (MVMT), a key player in the Movement blockchain, has filed for Chapter 11 bankruptcy in Delaware, U.S. On-chain reports indicate that the July 15 filing lists assets between $100,000 and $500,000 and liabilities of up to $10 million. Over 299 creditors are listed, with Rushikesh Manche holding the largest unsecured claim of over $1.6 million. Manche, a former co-founder, was dismissed but retains a 34.25% equity stake. The company had raised $38 million in a Series A round led by Polychain and was central to the Ethereum Layer 2 ecosystem. The December 2024 launch of the MOVE token triggered a market maker dumping crisis, leading to Manche’s departure and a strategic shift to Move Industries for development. Blockchain news outlets continue to monitor the aftermath.

ME News reports that on July 22 (UTC+8), according to The Block, Movement Labs (MVMT), the core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware earlier this month.

According to the filing submitted on July 15, the company reported assets between $100,000 and $500,000, liabilities of up to $10 million, and listed nearly 299 creditors, with the largest unsecured claim being over $1.6 million from the former co-founder Rushikesh Manche, who was removed from his position. Manche retains 34.25% equity and previously won a lawsuit seeking reimbursement for legal fees related to a Department of Justice grand jury investigation into the MOVE token issuance scandal.

The company was the core developer of the Ethereum Layer 2 network Movement Network and completed a $38 million Series A round led by Polychain. In December 2024, the MOVE token launch triggered a crisis due to market maker sell-offs; following an internal investigation, Manche was dismissed, and core development work has since been transferred to Move Industries.(Source: The Block)

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