Movement Labs Files for Bankruptcy, Ousted Founder’s $1.6 Million Claim is Largest Creditor

2026-07-22 by admin

PANews, July 22 – According to The Block, Movement Labs (MVMT), the original core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware earlier this month. According to documents filed on July 15, the company reported assets between $100,000 and $500,000 and liabilities of up to $10 million, listing nearly 299 creditors. The largest unsecured claim is over $1.6 million from ousted co-founder Rushikesh Manche. Manche retains a 34.25% equity stake and previously filed a lawsuit — which was upheld — seeking payment of legal fees related to a Department of Justice grand jury investigation into the MOVE token issuance scandal.

The company was once the core developer of the Ethereum Layer 2 network Movement Network, having completed a $38 million Series A funding round led by Polychain. The MOVE token issuance in December 2024 triggered a crisis due to market maker dumping. Following an internal investigation, Manche was fired, and core development work has been transferred to Move Industries.

PANews July 22 news, according to The Block, the U.S. House Agriculture Committee's Digital Assets Subcommittee held a hearing on sports betting prediction markets on Tuesday, with lawmakers discussing whether current laws and CFTC resources are sufficient to regulate this rapidly expanding industry. Over the past year, CFTC Chairman Michael Selig has taken a tough stance, asserting that the agency has "exclusive jurisdiction" over prediction markets and fighting multiple states through litigation. At the hearing, lawmakers also focused on CFTC resources — the agency's fiscal year 2027 budget request is $410 million (a 12.3% increase), with around 550 employees, far below the SEC's $1.9 billion budget and more than 4,000 employees. Agriculture Committee Chairman Glenn Thompson said he would assess whether regulatory gaps exist and consider legislation. Congressman Dusty Johnson noted that derivatives products have undergone massive changes and that existing laws need to address previously unforeseen issues, stating, "The courts and the commission are both acting. Congress should not remain silent. We have work to do here."

PANews, July 22 – According to The Block, Movement Labs (MVMT), the original core development company behind the Movement blockchain, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware earlier this month. According to documents filed on July 15, the company reported assets between $100,000 and $500,000 and liabilities of up to $10 million, listing nearly 299 creditors. The largest unsecured claim is over $1.6 million from ousted co-founder Rushikesh Manche. Manche retains a 34.25% equity stake and previously filed a lawsuit — which was upheld — seeking payment of legal fees related to a Department of Justice grand jury investigation into the MOVE token issuance scandal. The company was once the core developer of the Ethereum Layer 2 network Movement Network, having completed a $38 million Series A funding round led by Polychain. The MOVE token issuance in December 2024 triggered a crisis due to market maker dumping. Following an internal investigation, Manche was fired, and core development work has been transferred to Move Industries.