Movement Labs Files for Bankruptcy, Co-Founders Claim Over $1.6 Million

TechFlow reports, July 22, according to The Block, Movement blockchain's original core development company Movement Labs filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware on July 15. Documents show the company declared assets between $100,001 and $500,000, liabilities up to $10 million, and up to 299 creditors.

Among them, the largest unsecured claim comes from co-founder Rushikesh "Rushi" Manche, amounting to over $1.6 million. After being dismissed from the company, Manche still retains a 34.25% equity stake. The company was previously embroiled in controversy due to sell-off disputes following the MOVE token issuance, and subsequently underwent business restructuring.