MVMT Labs bankruptcy lists under $1 million in assets after $38M raise
Movement Labs raised $38 million in an April 2024 Series A led by Polychain Capital.
By July 22 this 12 months, MVMT Labs’ bankruptcy submitting confirmed simply $100,001 to $1 million in estimated assets towards $1 million to $10 million in liabilities, with 200 to 999 collectors listed.
After the corporate filed for Chapter 11 Subchapter V safety on July 15, collectors now face a extra rapid query: which assets and claims remained with the debtor as Movement’s working construction modified?
MVMT Labs was the corporate behind Movement Labs, the unique developer of Movement Network. Its tasks included the M1 and M2 blockchains, in addition to Move Stack, an open-source framework for constructing networks with the Move programming language.
MVMT Labs is the one named debtor in Delaware case 26-11113-TMH. The Movement Network, Movement Network Foundation, Move Industries, Movement Limited and the MOVE token usually are not named debtors in the case.
Move Industries CEO Torab said on July 21 that MVMT Labs has no affiliation with Move Industries and that his firm just isn’t concerned in the bankruptcy.
Torab equipped the present operator’s account. The authorized boundary nonetheless is dependent upon courtroom data and agreements. The Foundation’s December 2025 announcement helps a change in working roles whereas leaving the related possession and switch phrases undisclosed.
The working cut up predates the bankruptcy
Movement’s current construction took form throughout 2025, after a governance and market-making disaster and the departure of co-founder Rushi Manche.
Movement introduced a reorganization under Move Industries in May. On Dec. 29, the Foundation said it had completed an operating change that made Move Industries its main service supplier.
According to that announcement, Move Industries assumed main working duties for the community on the Foundation’s behalf and purchased key staff. The Foundation described itself and its board as impartial stewards, whereas Move Industries would construct, function, and develop the ecosystem for it.
The announcement leaves the transferor, consideration, and asset listing unspecified. It establishes the working roles the Foundation described, whereas possession of bankruptcy-relevant rights stays unresolved.
| Entity or asset | Established function | Position in this case | Unresolved publicity |
|---|---|---|---|
| MVMT Labs, Inc. | Historical know-how developer and the one named debtor | Its property pursuits and qualifying claims or recoveries enter the property | Cash, IP, contracts, token pursuits, authorized claims, intercompany balances and obligations |
| Movement Network Foundation | Described itself in December 2025 because the community’s impartial steward | Not a named debtor | Relevant assets, agreements, claims towards MVMT and obligations to MVMT |
| Movement Limited | Foundation subsidiary recognized in the MOVE launch historical past | Not a named debtor | Current function and any related holdings or agreements |
| Move Industries | Became the Foundation’s main service supplier under the December 2025 announcement | Not a named debtor; its CEO asserts no affiliation with MVMT | Terms behind the working change and worker acquisition |
| Movement Network | Public endpoint remained responsive after the submitting | No community submitting is listed | Dependence on any rights or contracts owned by MVMT |
| MOVE | Token continued buying and selling after the submitting | The token itself just isn’t a debtor | Any MOVE pursuits held by MVMT and their therapy in the property |
A March 2026 Delaware Court of Chancery report described MVMT Labs because the technology-development firm that created the Movement blockchain. It mentioned MVMT launched MOVE in December 2024 by Movement Network Foundation and its subsidiary, Movement Limited.
The bankruptcy docket index identifies a debtor-in-possession financing movement at Dkt. 19, a sealed exhibit at Dkt. 20 and Michael Robinson’s first-day declaration at Dkt. 21. The captions don’t reveal the financing quantity or phrases. They additionally don’t clarify Project Fenix, the operating-change consideration, MVMT’s precise money, possession of IP and contracts, token pursuits, or insider and intercompany balances.
What enters MVMT’s property
Estate boundaries activate MVMT’s property pursuits.
Section 541 of the Bankruptcy Code creates an property comprising the debtor’s authorized and equitable pursuits in property when the case begins, along with specified recoveries and proceeds. In MVMT’s case, that might embrace money, receivables, contractual rights, mental property, token holdings and authorized claims, however solely to the extent MVMT owns them.
Property owned outright by a separate non-debtor stays outdoors MVMT’s property even when it helps the identical ecosystem. Only an possession curiosity tying worth to MVMT might carry the Foundation’s property, Move Industries’ property, or MOVE holdings into the property.
Creditors may also profit from claims that belong to the property. Section 548 offers a mechanism to keep away from qualifying transfers of debtor property or obligations made inside two years earlier than bankruptcy when the statute’s checks are proved. The public docket index provides no foundation to categorise the worker acquisition, service association, Project Fenix, or one other Movement-related transaction as qualifying.
The chance nonetheless places transaction paperwork on the middle of the case. If MVMT transferred property earlier than submitting, collectors and the courtroom might want to know what moved, what consideration MVMT obtained, and which rights it retained. Property that all the time belonged to a different entity stays with that proprietor regardless of MVMT’s function in creating the community.
A separate Chancery continuing identifies a possible obligation with out fixing its bankruptcy therapy. The March Rule 144 report concluded that Manche was entitled to development from MVMT for charges linked to a federal investigation, plus fees-on-fees and prejudgment curiosity. The report stays topic to exceptions and implementation and fixes neither an allowed bankruptcy declare nor a declare quantity.
The schedules and assertion of economic affairs ought to start to indicate MVMT’s money, receivables, contracts, litigation claims, token holdings, insider balances and money owed. Ownership and switch disputes might proceed past these disclosures.
Network exercise leaves possession unresolved
Movement’s official documentation identifies mainnet as chain ID 126 and lists its public RPC. During a short endpoint examine at 11:59 UTC on July 22, the ledger model superior from 180,558,734 to 180,558,762, and block peak elevated from 77,828,052 to 77,828,066 over about 5 seconds. The operator’s status page concurrently reported the mainnet, RPC, explorer, and indexer as operational.
At 12:21 UTC that day, CryptoSlate’s MOVE market page confirmed the token at $0.011, down 93% since final July, with a market capitalization of about $44.26 million and $9.38 million in 24-hour quantity.
Those snapshots present the community and token had been nonetheless transferring. What they don’t reveal is the place MVMT’s property ended, and the broader Movement ecosystem started.
MOVE possession by itself confers neither debtor nor creditor standing in MVMT’s case. A holder might have separate publicity by a declare towards MVMT, whereas the token’s market worth might react to disclosures about assets, financing or litigation.
Builders and enterprise companions should comply with the paperwork. A responsive RPC reveals that the community was accessible through the examine. Each service, grant, license or industrial settlement nonetheless should be matched to MVMT, the Foundation, Move Industries or Movement Limited. The named counterparty might decide whether or not the settlement is implicated in Chapter 11 and whether or not one other Movement entity has a declare towards or obligation to MVMT.
For collectors, community exercise and property worth are separate measures. Recovery is dependent upon property MVMT owns, claims it could pursue, and any qualifying prepetition transaction it could problem.
Four dates might make clear the boundary
The case calendar lists a Section 341 creditor assembly for Aug. 20, a second-day listening to for Aug. 27 at 11 a.m., a normal claims deadline for Sept. 14, and the Subchapter V plan deadline for Oct. 13.
The Aug. 27 listening to might make clear the financing request. Schedules and different disclosures might illuminate the property’s assets and obligations, whereas objections might present whether or not collectors, the U.S. Trustee or the Subchapter V trustee contest a prepetition transaction or the asserted separation.
For now, the submitting establishes a restricted however essential divide: MVMT Labs is the one named debtor, and the Movement Network remained operational after the petition.
Whether MVMT owns or can get well worth tied to that ecosystem will activate the disclosures, agreements, and courtroom disputes which have but to floor.
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