MVMT Labs files Chapter 11 bankruptcy after $38M Series A
In brief
- MVMT Labs filed Chapter 11 Subchapter V protection July 15 with 200–999 creditors listed.
- Assets disclosed at $100K–$1M against $1M–$10M in liabilities.
- Move Industries CEO denied affiliation with MVMT Labs or bankruptcy case.
- MVMT Labs developed M1, M2 blockchains and Move Stack framework.
Bankruptcy Structure and Asset Disclosure
MVMT Labs is the sole named debtor in Delaware case 26-11113-TMH. The bankruptcy docket identifies a debtor-in-possession financing motion and a sealed exhibit, though the amount and terms of any financing remain undisclosed.
The filing's asset range—between $100,001 and $1 million—stands in sharp contrast to the company's April 2024 Series A haul. MVMT Labs' projects included the M1 and M2 blockchains, as well as Move Stack, an open-source framework for building networks. The company was the original developer of Movement Network, though governance and operational control have since shifted.
Separation of Entities
A critical distinction emerged from the filing: the Movement Network, Movement Network Foundation, Move Industries, Movement Limited, and the MOVE token are not named debtors in the case. This separation raises questions about asset allocation and liability boundaries across the Movement ecosystem.
Move Industries CEO Torab reinforced this distance. "Move Industries CEO Torab said on July 21 that MVMT Labs has no affiliation with Move Industries and that his company is not involved in the bankruptcy," according to the filing record.
Restructuring and Governance Shifts
Movement's present structure took shape during 2025, after a governance and market-making crisis and the departure of co-founder Rushi Manche. The Foundation announced a reorganization under Move Industries in May, and on December 29, the Foundation said it had completed an operating change that made Move Industries its primary service provider. Move Industries assumed primary operating responsibilities for the network on the Foundation's behalf and acquired key employees.
The legal boundary between MVMT Labs and other Movement entities depends on court records and agreements that remain partly sealed or undisclosed. MVMT launched MOVE in December 2024 through Movement Network Foundation and its subsidiary, Movement Limited.
Frequently asked questions
Why did MVMT Labs file for bankruptcy after raising $38 million?
The filing doesn't disclose specific reasons, but Movement's structure underwent significant changes during 2025, including a governance crisis and the departure of co-founder Rushi Manche. Assets listed in the bankruptcy ($100K–$1M) are far below the April 2024 Series A raise, suggesting capital was deployed or distributed before the filing.
Is the MOVE token affected by the MVMT Labs bankruptcy?
No. The MOVE token is not named as a debtor in the case. Only MVMT Labs filed for Chapter 11; the Movement Network, its Foundation, Move Industries, and Movement Limited are separate entities and are not involved in the bankruptcy.
What is Move Industries' role after the bankruptcy?
Move Industries assumed primary operating responsibilities for the Movement Network on the Foundation's behalf and acquired key employees. Move Industries CEO Torab stated his company has no affiliation with MVMT Labs and is not involved in the bankruptcy.
