Movement Labs files for Chapter 11 bankruptcy as liabilities reach $10M, while Move Industries says the Movement blockchain continues.
Author: Akshat Thakur
22nd July 2026 –Movement Labs, the original company behind the Move-based Movement blockchain, has filed for Chapter 11 bankruptcy. The case landed in the U.S. Bankruptcy Court for the District of Delaware. News of the Movement Labs bankruptcy surfaced publicly around July 21, 2026.
High Signal Summary For A Quick Glance
Kai Alpha
@kai_alpha68
@WuBlockchain still has the co-founder as a top creditor after may. my first question is who benefiits from the chapter 11 filing
Movement Labs Files for Chapter 11 Bankruptcy With Liabilities Above $1 Million Movement Labs, the developer of the Movement blockchain, has filed for Chapter 11 bankruptcy protection. Court filings show the company has between $100,000 and $500,000 in assets, more than $1 https://t.co/7wJjZuYye4
11:54 PM·Jul 21, 2026
Degen guy
@degenbross
@WuBlockchain It was good while it ended. I enjoyed interacting with movement community in late 2024 to first quarter of 2025.
Movement Labs Files for Chapter 11 Bankruptcy With Liabilities Above $1 Million Movement Labs, the developer of the Movement blockchain, has filed for Chapter 11 bankruptcy protection. Court filings show the company has between $100,000 and $500,000 in assets, more than $1 https://t.co/7wJjZuYye4
07:18 PM·Jul 21, 2026
why
@NullContex1s
@WuBlockchain What happens to the Movement chain itself — independent foundation or dead?
Movement Labs Files for Chapter 11 Bankruptcy With Liabilities Above $1 Million Movement Labs, the developer of the Movement blockchain, has filed for Chapter 11 bankruptcy protection. Court filings show the company has between $100,000 and $500,000 in assets, more than $1 https://t.co/7wJjZuYye4
07:14 PM·Jul 21, 2026
Steady attention without excessive speculation.
Court records point to a filing dated on or around July 15, 2026. According to The Block, the company reported assets of $100,001 to $500,000. Its reported liabilities climb as high as $10 million.
The filing lists up to 299 creditors. At the very top sits co-founder Rushikesh “Rushi” Manche. His claim tops $1.6 million, the largest single amount on the list.
Manche still holds a 34.25% equity stake in the company. Earlier, he sued Movement Labs in Delaware Chancery Court. He then won advancement of legal fees tied to a DOJ grand jury investigation into the MOVE token launch.
Other names appear alongside him. According to reporting, the Delaware Division of Corporations holds a claim of roughly $459,000. Move Industries, Anchorage Digital, and audit firm Ottersec also feature on the list.
Chapter 11 lets a debtor keep operating while it restructures debts under court supervision. So an automatic stay now pauses collection efforts against the company. A plan of reorganization could follow later.
Chapter 11 differs from Chapter 7. A Chapter 7 case would force a full liquidation and shut the company down. Chapter 11, by contrast, keeps the door open for a restructuring.
The numbers, though, show a steep fall. A firm that once raised tens of millions now reports under $500,000 in assets. Meanwhile, its liabilities dwarf that figure by a wide margin.
One widely shared claim of “$1 in revenue” could not be verified in court filings or major reporting. For now, treat that detail as unconfirmed.
Key milestones in Movement Labs’ Rise and Fall
Rushi Manche and Cooper Scanlon raise pre-seed funding followed by a $38M Series A led by Polychain, bringing total funding to tens of millions.
MOVE launches amid massive hype, spiking to ~$1.45 with an FDV briefly reaching multi-billion levels before an immediate collapse.
Obscure market maker Rentech (linked to Web3Port) dumps ~5% of supply for ~$38M within hours of listing, triggering exchange suspensions and massive sell pressure.
Following an internal investigation into the dump, Rushi Manche is suspended then terminated. Move Industries is announced as the new entity leading development under CEO Torab Torabi.
Development pivots to a sovereign Layer 1 focused on stablecoin settlement, fintech, cross-border payments, and emerging markets including reported engagement with Ethiopian officials.
Bankruptcy filed in Delaware with $100K–$500K in assets against liabilities up to $10M. Rushi Manche emerges as the largest creditor with a >$1.6M claim.
The company did not collapse overnight. Rushi Manche and Cooper Scanlon, both Vanderbilt dropouts, founded the firm around 2022. Then Polychain led a $38 million Series A.
Backers once valued the network highly. Reports put the token’s fully diluted valuation in the billions around launch. That figure has since collapsed with the price.
The MOVE token launched in December 2024. Soon after, a CoinDesk investigation exposed a deal with an obscure intermediary called Rentech. According to CoinDesk, roughly 66 million MOVE tokens, about 5% of supply, moved to wallets tied to the arrangement.
Those wallets then dumped the tokens fast. As a result, the sell-off reached about $38 million. Binance soon banned linked accounts, and Coinbase suspended trading.
On-chain data still traces the episode. The MOVE contract on Ethereum sits at 0x3073f7aAA4DB83f95e9FFf17424F71D4751a3073. Analysts followed the dump through wallet clusters linked to Rentech and Web3Port.
Key milestones in Movement Labs’ Rise and Fall
Rushi Manche and Cooper Scanlon raise pre-seed funding followed by a $38M Series A led by Polychain, bringing total funding to tens of millions.
MOVE launches amid massive hype, spiking to ~$1.45 with an FDV briefly reaching multi-billion levels before an immediate collapse.
Obscure market maker Rentech (linked to Web3Port) dumps ~5% of supply for ~$38M within hours of listing, triggering exchange suspensions and massive sell pressure.
Following an internal investigation into the dump, Rushi Manche is suspended then terminated. Move Industries is announced as the new entity leading development under CEO Torab Torabi.
Development pivots to a sovereign Layer 1 focused on stablecoin settlement, fintech, cross-border payments, and emerging markets including reported engagement with Ethiopian officials.
Bankruptcy filed in Delaware with $100K–$500K in assets against liabilities up to $10M. Rushi Manche emerges as the largest creditor with a >$1.6M claim.
After the scandal, the project restructured quickly. The company suspended, then terminated Manche in May 2025. A new entity, Move Industries, took over development under CEO Torab Torabi.
Torabi drew a firm line this week. He stated that Move Industries is not involved in the Movement Labs bankruptcy. The Movement Network Foundation has framed the split as a clean break.
The Foundation also relaunched the project as a sovereign Layer 1. Now the focus sits on stablecoins, remittances, and emerging-markets finance. It even ran token buybacks worth about 4.2% of supply.
Token holders are generally not direct creditors of the bankrupt entity. So they cannot file claims the way listed creditors can. Instead, they carry secondary-market and ecosystem risk.
That risk already shows in the price. MOVE traded near $1.21 to $1.45 at its December 2024 peak. Today it changes hands near $0.01, a drop of more than 99%.
None of this is financial advice. Readers should weigh the risks carefully before touching any token tied to a bankrupt developer.
Manche has pushed back on how the story gets told. In an April 2025 post on X, he admitted errors but also pointed at others.
“Honestly, mistakes were made. I personally trusted opportunistic administrators who acted as shadow decision makers behind the decisions with their own financial motives.”
The company took a harder stance at the time. Its May 2025 statement said it had terminated Manche and that “the movement will continue under different leadership.” Since then, both sides have kept fighting in court.
The case now moves through the Delaware court. Creditors like Manche will press their claims, and equity stakes may face dilution. The exact docket details are not yet widely indexed in public sources.
Community reaction has skewed sharply negative. Retail traders have led the criticism, and many call the collapse another venture-backed token failure. Others question whether the separate entities truly stand apart, as the team claims.
Many voices on X frame the Movement Labs bankruptcy as proof of deeper problems, not a clean pivot. For now, the Layer 1 keeps building while the original company winds down in court.
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.
