Movement Labs Files Subchapter V Bankruptcy Listing $10M in Liabilities After Transferring Assets to Foundation Entity
Movement Labs, developer of the Movement blockchain, filed for bankruptcy in Delaware on July 17, listing up to $10M in liabilities against assets between $100,001 and $500,000. Court records show the company chose Subchapter V, a streamlined restructuring route that left it with approximately $60,000 in cash, no material operating assets, and no full-time employees by the petition date.
Pre-bankruptcy filings detail a transaction that moved the company's intellectual property, key contracts, and development staff to Move Industries and the Movement Network Foundation for $1.2M. The estate now holds primarily litigation claims, with former co-founder Rushi Manche listed as the largest creditor with a $1.6M claim. A foundation-controlled Cayman subsidiary is providing up to $5.7M in debtor-in-possession financing, subject to a final bankruptcy court approval hearing on Aug 27.
From the sources (9 posts)
@coindeskLATEST: Movement Labs, the developer of the Movement blockchain, has filed for Chapter 11 bankruptcy. Read the fully story by @HeleneBraunn on CoinDesk
@wublockchainMovement 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 an
@theblockcoTHE BLOCK: Movement Labs' Chapter 11 bankruptcy filing lists assets between $100,001 and $500,000 and liabilities of up to $10 million. Terminated co-founder Rushi Manche is the largest creditor, with a $1.6 million claim.
@cointelegraph🚨 JUST IN: Movement Labs has filed for Chapter 11 bankruptcy.
@wublockchainMovement Collapses: $141M Raised, Near-Zero Revenue, Now Bankrupt According to DeFiLlama, since November last year, daily app revenue on the Movement chain has consistently stayed below $800. On-chain daily fees have hovered in the single
@wublockchainMove Industries CEO Torab Torabi told Wu Blockchain that Move Industries is the development team behind the Movement ecosystem. He said MVMT Labs has filed for bankruptcy, but it has no affiliation with Move Industries, meaning Move Industr
@coinmarketcapLATEST: ⚡ Movement Labs has filed for Chapter 11 bankruptcy in Delaware, listing up to $10M in liabilities against $100,001-$500,000 in assets.
@bkclaimsThe big thing CoinDesk missed: Movement Labs filed five days ago under Subchapter V - not a traditional Chapter 11. That distinction matters. Sub V is a faster, cheaper and considerably more debtor-friendly restructuring process. There is
@bkclaims🚨 WOW—THIS is the real breaking news in the Movement Labs bankruptcy. Forget the headline that Movement Labs simply “filed Chapter 11.” The docket reveals what may be an extraordinary new crypto restructuring tactic: Transfer the operatin