Movement Labs Files for Chapter 11 Bankruptcy: What It Really Means
MVMT Labs, Inc. the original developer behind the Movement blockchain, has filed for Chapter 11 bankruptcy in Delaware. The petition was filed on July 15 and became public this week.
The Numbers:
✅ Assets: $100K – $500K
✅ Liabilities: up to $10 million
✅ Creditors: up to 299
✅ Largest claim: ousted co-founder Rushi Manche, $1.6M+
✅ Case: In re MVMT Labs, Inc. (Subchapter V, District of Delaware)
Important: Read this before you panic sell:
This filing covers MVMT Labs only. Move Industries, which took over Movement's development and operations in December 2025, is a separate legal entity and is NOT part of the bankruptcy. CEO Torab Torabi confirmed operations continue normally. The chain is not shutting down.
Also note: Subchapter V is a Reorganization track, not liquidation. A restructuring plan is expected around mid-October, with a creditor claim deadline of September 14.
How much money went in before launch:
🔹 $3.4M pre-seed - September 2023
🔹 $38M Series A - April 2024, led by Polychain Capital
🔹 Total: $41.4M raised in 2023–2024 before the token ever traded
🔹 A further $100M Series B followed in early 2025, taking the total past $140M
Now the part that actually hurts 👇
If you invested $100,000 in #MOVE at its ATH of $1.41 on December, 2024, today your holdings are worth just ~$750.
That's 19 months. -99.27%. And that's pure holding return, before any fees or taxes.
But the chart tells the real story:
➡️ Raised $141.4M historically
➡️ FDV now ~$107M, down 99%+ from ATH
➡️
$MOVE trading near $0.0106
➡️ On-chain fees in the last 24 hours: $1
A project once near a $3B valuation now lists under $500K in assets. That's the lesson, funding rounds and TVL headlines don't equal revenue. Always check whether a chain is actually being used before you buy the narrative.
Narratives move fast. Capital moves faster.
Not Financial Advice. ALWAYS DYOR.
#bankruptcy #movement #CryptoPatel