MVMT Labs, the developer of Movement blockchain, filed for Chapter 11 bankruptcy protection in the U.S. District Court for the District of Delaware on the 15th (local time). According to court records from Bankruptcy Observer on the 22nd (Korean time), the filing follows Chapter 11 procedures allowing the company to continue operations while adjusting debts. The case is assigned to Judge Thomas M. Horan. CEO Torab Torabi of Move Industries clarified on the 21st (local time) that Move Industries, the development team of the Movement ecosystem, has no affiliation with MVMT Labs and is not involved in the bankruptcy.
MVMT Labs Files Chapter 11 with Up to $10 Million in Liabilities
According to public court records, the filing follows Chapter 11 procedures for corporate debt adjustment while maintaining business operations. MVMT Labs is listed as the debtor, with Potter Anderson & Corroon LLP, a Delaware-based law firm, serving as legal counsel.
The bankruptcy petition indicates up to 1,000 creditors, with assets ranging from $101,000 to $500,000 and liabilities up to $10 million. Under the Subchapter V small business restructuring procedure, the deadline for submitting a restructuring plan is October 13.
CEO Clarifies Move Industries Has No Bankruptcy Involvement
On the 21st (local time), Torab Torabi, CEO of Move Industries, stated on X: "MVMT Labs filed for bankruptcy. I am the CEO of Move Industries and Move Industries is the developer team of the Movement ecosystem. MVMT Labs has no affiliation with Move Industries, thus Move Industries is not involved in the bankruptcy."
Torabi further explained that Movement operates as a global fintech company based on a licensed stablecoin payment rail, created to bridge the gap between how money moves today and how it should move forward.
Move Industries Emerged from Movement Labs Reorganization
Move Industries was newly established during the organizational restructuring of Movement Labs following the MOVE token price collapse and market maker controversy last year. Torabi's statement addresses market confusion about whether MVMT Labs' bankruptcy filing affects the entire Movement ecosystem. The impact of MVMT Labs' Chapter 11 proceedings on the Movement ecosystem will be determined by subsequent court procedures and related company positions.
FAQ
What did MVMT Labs file on the 15th (local time)?
MVMT Labs filed for Chapter 11 bankruptcy protection in the U.S. District Court for the District of Delaware on the 15th (local time). The filing follows Chapter 11 procedures allowing the company to continue operations while adjusting debts, with Judge Thomas M. Horan assigned to the case.
How much debt does MVMT Labs have according to the bankruptcy petition?
According to the bankruptcy petition, MVMT Labs has up to 1,000 creditors, assets ranging from $101,000 to $500,000, and liabilities up to $10 million. The company must submit a restructuring plan by October 13 under Subchapter V small business restructuring procedures.
What is the relationship between MVMT Labs and Move Industries?
CEO Torab Torabi clarified on the 21st (local time) that Move Industries, which he leads as the development team of the Movement ecosystem, has no affiliation with MVMT Labs and is not involved in the bankruptcy. Move Industries was established during Movement Labs' organizational restructuring following last year's MOVE token price collapse.
