MVMT Labs reports <$1M assets after $38M Series A

MVMT Labs filed for Chapter 11 Subchapter V in Delaware on July 15 and listed estimated assets of $100,001 to $1 million, liabilities of $1 million to $10 million, and 200 to 999 creditors. The company raised $38 million in a Series A in April 2024 led by Polychain Capital. MVMT Labs is the only named debtor in case 26-11113-TMH.

MVMT Labs developed the Movement Network and created the M1 and M2 blockchains and the Move Stack framework. A March 2026 Delaware Court of Chancery report said MVMT launched the MOVE token in December 2024 through the Movement Network Foundation and its subsidiary Movement Limited.

The bankruptcy filings do not name the Movement Network Foundation, Move Industries, Movement Limited or the MOVE token as debtors. Move Industries’ CEO Torab wrote on July 21 that “MVMT Labs has no affiliation with Move Industries and that his company is not involved in the bankruptcy” and provided the current operator account for the network. A Foundation announcement on Dec. 29, 2025 said Move Industries became the Foundation’s primary service provider and that Move Industries acquired key employees; the announcement did not list what was transferred, what consideration was paid, or which rights were retained.

Bankruptcy law defines the estate by what the debtor owned when the case began. Section 541 creates an estate of the debtor’s legal and equitable interests at the start of the case; that can include cash, receivables, contracts, intellectual property, token holdings and legal claims, but only if MVMT owned them. Section 548 allows a trustee or estate to seek to void certain transfers made within two years before filing; public docket entries so far do not show documents that establish whether prepetition transfers qualify for avoidance under the statute.

The bankruptcy docket includes a debtor-in-possession financing motion (Dkt. 19), a sealed exhibit (Dkt. 20) and a first-day declaration (Dkt. 21). The public captions do not disclose the financing amount, Project Fenix, or detailed terms of any operating-change consideration.

The Chancery report identified a potential obligation to co-founder Rushi Manche for advancement of legal fees tied to a federal investigation. The report described entitlement to advancement but did not fix an allowed bankruptcy claim or a claim amount.

Network activity continued after the petition. A July 22 check found the Movement mainnet RPC responsive and blocks advancing. At 12:21 UTC on July 22 the MOVE token traded at $0.011, down about 93% from the prior July, with a market capitalization near $44.26 million and roughly $9.38 million in 24-hour volume.

The case calendar lists a Section 341 meeting for Aug. 20, a second-day hearing for Aug. 27 that may address the financing request, a general claims deadline of Sept. 14, and the Subchapter V plan deadline of Oct. 13. MVMT has not yet filed publicly available schedules and a statement of financial affairs that would identify cash, receivables, contracts, token holdings and intercompany balances.

The filings and announcements to date identify many operating arrangements and a continuing network, while ownership of specific assets and the treatment of prepetition transfers remain to be documented in court records and disclosure schedules.