BlockBeats News, July 22nd, Movement, the core development company behind Movement Chain, Movement Labs (MVMT), filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware earlier this month. According to documents filed on July 15th, the company reported assets between $100,000 and $500,000, with liabilities of up to $10 million, listing nearly 299 creditors. The largest unsecured claim was from former co-founder Rushikesh Manche, amounting to over $1.6 million. Manche retains a 34.25% equity stake and has previously filed a lawsuit seeking legal fees support for the Department of Justice grand jury investigation related to the MOVE token issuance scandal.

MVMT was the core developer of the Ethereum Layer 2 network Movement Network and had completed a $38 million Series A funding round led by Polychain. The issuance of the MOVE token in December 2024 led to a crisis due to a market maker sell-off. Following an internal investigation, Manche was fired, and the core development work has since been transferred to Move Industries.