The filing, assigned Case No. 26-11113 before Judge Thomas M. Horan, lists between 200 and 999 creditors. Jeffrey E. Schwendeman of RPA Advisors serves as Chapter 11 Trustee. The law firm Potter Anderson and Corroon LLP represents the debtor. MVMT Labs, Inc. is registered at 166 Geary Street, Suite 1500, San Francisco, CA, a virtual office address. A creditors' meeting under Section 341(a) of the U.S. Bankruptcy Code is scheduled for August 20, 2026. Anyone with a valid claim against the company must file before the September 14, 2026 bar date or risk being excluded from any distribution.

That reportedly $1.6 million claim arrives just six days after Manche sued Movement Labs in Delaware's Court of Chancery on July 9, 2026. He was fired on May 7, 2025, shortly after Movement Labs suspended him pending an internal investigation into the MOVE token launch. The token launched in December 2024, but the scandal broke in spring 2025 when a CoinDesk investigation published on April 30, 2025, revealed that a market maker called Rentech received control of 66 million MOVE tokens, roughly 5 percent of the total supply, through an undisclosed arrangement.

Rentech sold those tokens within 24 hours for an estimated $38 million profit, sending MOVE's price into freefall. Coinbase suspended MOVE trading on May 15, 2025. Binance also moved to suspend or delist the token. The bankruptcy's creditor landscape is further complicated by separate disputed claims: Sam Thapaliya, CEO of Zebec Protocol, pursued legal action over an alleged 2.5 percent of MOVE's total supply valued at over $50 million, and Vinit Parekh had a separate alleged claim for an additional 2.5 percent of tokens.

Manche, who served as CTO rather than in a business development role, publicly pointed to his co-founder and then-CEO Cooper Scanlon when asked about the Rentech arrangement. "When priorities changed, our roles changed, but Cooper's decisions in the early days heavily shaped the way the launch went," Manche said at the time. Scanlon voluntarily stepped down around the same period. After his exit, Manche launched Nyx Group in December 2025, a crypto investment fund targeting up to $100 million in liquid market deployments. "Crypto is entering a new chapter rife with opportunity and uncertainty," he said of the venture. "Nyx Group aims to match founders we know and trust with the funds and hands-on counsel they need."

The bankruptcy closes a chapter on what had briefly looked like a recovery. In May 2025, remaining employees stood up a new operational entity called Move Industries under CEO Torab Torabi and President and CMO Will Gaines.

On June 2, 2026, the company announced it had secured licensed payment infrastructure across the US, Canada, and the EU, positioning itself as a stablecoin settlement layer for emerging markets. As part of that pivot, the Movement Network Foundation repurchased approximately 19 percent of investor-allocated tokens, representing roughly 4.2 percent of total supply, in a significant governance action intended to signal commitment to the project. The broader pitch was direct: global remittances to low- and middle-income countries total roughly $685 billion annually, with senders paying an average fee of 6.36 percent per transaction and waiting two to five business days for settlement. Partners included Circle (USDCx), KAST (which brought more than 18,000 verified users across 160-plus countries), Avant Protocol, and Sorted Wallet. Torabi framed the strategy plainly: "Our mission is to marry licensed payment rails with onchain settlement to modernize financial services globally, particularly in emerging markets."

That promise now sits in bankruptcy court. MOVE currently trades at approximately $0.0111, down from an all-time high of $1.45, a decline of more than 99 percent. Daily trading volume stands at roughly $8.18 million against a market capitalization of about $46.35 million. Approximately 4.2 billion of the 10 billion total MOVE tokens are in circulation.

The consequences extend well beyond the United States. South Asia is the world's largest remittance recipient region, with India alone receiving more than $120 billion annually. Builders and fintech operators in India, Sri Lanka, Bangladesh, and Pakistan who may have begun integrating Movement's payment rails now face uncertainty about whether those services will continue.

In Africa, where Sub-Saharan markets received approximately $205 billion in on-chain value in the last measured period, KAST users in Nigeria, Kenya, Ghana, and South Africa who may have accessed Movement-connected dollar savings or cross-border payment products face similar questions.

The MOVE token's collapse has also wiped out retail holders in both regions who bought during the June 2026 recovery narrative, when the token traded near $0.14. Developers building on Movement's Move VM for fintech applications may lose their primary institutional backer. Aptos and Sui, the two other prominent Move-language blockchain networks, may absorb some developer talent, but grant pipelines tied to Movement are frozen until the court proceedings conclude.

The Movement collapse mirrors the 2025 implosion of the Mantra (OM) token, which also involved undisclosed market-maker agreements and a rapid price collapse. Together, the two cases have placed crypto market-making arrangements under growing regulatory scrutiny and strengthened calls for mandatory public disclosure of such agreements at the point of token launch. Any businesses or individuals worldwide holding open contracts, grants, or other claims against Movement Labs should note the September 14, 2026 bar date: missing that deadline forfeits any right to participate in a future distribution from the estate.