MVMT Labs bankruptcy lists under $1 million in assets after $38M raise

Here is the latest from the digital-asset markets: Movement Labs raised $38 million in an April 2024 Series A led by Polychain Capital. By July 22 this year, MVMT Labs’ bankruptcy filing showed just $100,001 to $1 million in estimated assets against $1 million to $10 million in liabilities, with 200 to 999 creditors listed. After the company filed for Chapter 11 Subchapter V protection on July 15, creditors now face a more immediate question: which assets and claims remained with the debtor as Movement’s operating structure changed?

MVMT Labs was the company behind Movement Labs, the original developer of Movement Network. Its projects included the M1 and M2 blockchains, as well as Move Stack, an open-source framework for building networks with the Move programming language. MVMT Labs is the only named debtor in Delaware case 26-11113-TMH.

Market Dynamics

The Movement Network, Movement Network Foundation, Move Industries, Movement Limited and the MOVE token are not named debtors in the case. 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. Torab supplied the current operator's account.

The legal boundary still depends on court records and agreements. The Foundation's December 2025 announcement supports a change in operating roles while leaving the relevant ownership and transfer terms undisclosed. The operating split predates the bankruptcy Movement's present structure took shape during 2025, after a governance and market-making crisis and the departure of co-founder Rushi Manche.

Movement announced a reorganization under Move Industries in May. 29, the Foundation said it had completed an operating change that made Move Industries its primary service provider. According to that announcement, Move Industries assumed primary operating responsibilities for the network on the Foundation's behalf and acquired key employees.

Market Impact

The Foundation described itself and its board as independent stewards, while Move Industries would build, operate, and grow the ecosystem for it. The announcement leaves the transferor, consideration, and asset list unspecified. It establishes the operating roles the Foundation described, while ownership of bankruptcy-relevant rights remains unresolved.

Historical technology developer and the only named debtor Its property interests and qualifying claims or recoveries enter the estate Cash, IP, contracts, token interests, legal claims, intercompany balances and obligations Movement Network Foundation Described itself in December 2025 as the network's independent steward Not a named debtor Relevant assets, agreements, claims against MVMT and obligations to MVMT Movement Limited Foundation subsidiary identified in the MOVE launch history Not a named debtor Current role and any relevant holdings or agreements Move Industries Became the Foundation's primary service provider under the December 2025 announcement Not a named debtor; its CEO asserts no affiliation with MVMT Terms behind the operating change and employee acquisition Movement Network Public endpoint remained responsive after the filing No network filing is listed Dependence on any rights or contracts owned by MVMT MOVE Token continued trading after the filing The token itself is not a debtor Any MOVE interests held by MVMT and their treatment in the estate A March 2026 Delaware Court of Chancery report described MVMT Labs as the technology-development company that created the Movement blockchain. It said MVMT launched MOVE in December 2024 through Movement Network Foundation and its subsidiary, Movement Limited. Related Reading Movement Labs rebrands as MOVE token faces dramatic plunge and potential Binance delisting MOVE token faces scrutiny and potential delisting as Binance imposes monitoring tag.

May 7, 2025 Oluwapelumi Adejumo The bankruptcy docket index identifies a debtor-in-possession financing motion at Dkt. 19, a sealed exhibit at Dkt. 20 and Michael Robinson's first-day declaration at Dkt.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.