Movement Labs Ends Up in Bankruptcy Court After Building One of Crypto’s Most Promising Blockchains

Movement Labs built a blockchain backed by venture capital, launched a token listed on major exchanges and positioned itself as a contender in the race for next-generation infrastructure.

Now, the company behind the project is in bankruptcy court.

MVMT Labs Inc., the entity associated with Movement Labs, filed for Chapter 11 protection, reporting between $100,000 and $500,000 in assets against more than $1 million in liabilities, according to court filings. The company listed fewer than 1,000 creditors.

The bankruptcy marks a sharp reversal for a project that had emerged as one of crypto’s most prominent Move-based blockchain initiatives.

Movement attracted significant industry attention through its technology, funding and exchange support, but the company later faced scrutiny over its MOVE token market-making arrangements, an internal investigation and the departure of co-founder Rushi Manche.

The filing highlights the challenges blockchain companies face when token launches, investor expectations and operating businesses move in different directions.

Bankruptcy Filing Shows Extent of Movement Labs’ Financial Trouble

Court documents showed MVMT Labs reported assets between $100,000 and $500,000, with liabilities ranging from $1 million to $10 million.

The filing listed between 200 and 999 creditors.

Major creditors included Movement co-founder Rushi Manche, the Delaware Division of Revenue and crypto custodian Anchorage Digital.

The company filed under Subchapter V of Chapter 11, a restructuring process designed for smaller businesses. A restructuring plan is due by October 13, 2026.

MOVE Token Controversy Put Pressure on the Project

Movement Labs faced scrutiny after questions emerged over its MOVE token market-making arrangements.

The controversy involved the sale of 66 million MOVE tokens, representing about 5% of the token supply, through a market-making arrangement that later drew attention from the wider crypto market.

Binance subsequently banned the related market-making account. Movement Labs launched an internal investigation and announced a token buyback program.

The company later parted ways with co-founder Rushi Manche in May 2025.

Movement Blockchain Continues Separately From Bankrupt Entity

The bankruptcy filing applies to MVMT Labs Inc., the company behind Movement Labs.

A separate entity, Move Industries, has continued operations and shifted its focus toward cross-border payments, remittances and stablecoin infrastructure.

The distinction reflects a common structure in crypto, where technology networks, operating companies and token-related entities can exist under separate legal entities.

Movement’s Bankruptcy Adds Pressure on Crypto’s Venture-Backed Model

The Movement Labs filing comes as crypto companies face renewed scrutiny over how quickly blockchain projects can turn investor funding and token launches into sustainable businesses.

Movement had secured venture backing, exchange support and market attention during its rise.

Its bankruptcy now places the company’s future under court supervision while the broader Movement ecosystem continues to develop separately.

Court-supervised restructuring will determine what remains of MVMT Labs. The blockchain network may continue under different operators, but the bankruptcy filing marks a significant setback for the company that built Movement and raises fresh questions about the gap between crypto project valuations and the businesses behind them.