MVMT Labs Chapter 11 Bankruptcy After MOVE Scandal

The core development company behind the Movement blockchain, MVMT Labs, Inc., has filed for Chapter 11 bankruptcy protection, capping a turbulent period marked by a controversial token launch, internal disputes, and a major strategic pivot. The voluntary petition was filed on July 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware, listing liabilities of up to $10 million against assets valued between $100,001 and $500,000.

The company’s financial collapse follows a series of damaging events that began with the launch of its MOVE token in December 2024. According to court documents and previous reports, a market-making agreement granted an entity called Rentech control of approximately 66 million MOVE tokens, representing about 5% of the total supply. These tokens were rapidly sold shortly after launch, triggering a catastrophic price crash. The incident led major exchanges, including Binance, to suspend trading and prompted investigations, including a reported grand jury probe by the Department of Justice.

Internal governance unraveled in the aftermath. Cofounder Rushi Manche, who is listed as the largest unsecured creditor with a claim exceeding $1.6 million,...