BlockBeats report: On July 22, Movement Labs (MVMT), the original core development company behind the Movement chain, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware earlier this month. According to documents filed on July 15, the company reported assets between $100,000 and $500,000, liabilities of up to $10 million, and approximately 299 listed creditors. The largest unsecured claim is over $1.6 million from Rushikesh Manche, the former co-founder who was removed from his position. Manche retains a 34.25% equity stake and previously won legal support for a lawsuit concerning legal fees related to a Department of Justice grand jury investigation into the MOVE token issuance scandal.
MVMT was the core development team behind 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.