Woofun AI reports that Movement Labs, the original core developer of the Movement Network, filed for Chapter 11 bankruptcy protection in a Delaware court earlier this month. Court documents submitted on July 15 indicate the company holds assets between $100,000 and $500,000 while facing liabilities of up to $10 million across nearly 299 creditors. The largest unsecured claim exceeds $1.6 million and is held by ousted co-founder Rushikesh Manche, who retains a 34.25% equity stake and has previously litigated regarding legal fees tied to a Department of Justice grand jury investigation into the MOVE token issuance. Following Manche's dismissal in December 2024 after a market maker sell-off crisis, core development responsibilities were transferred to Move Industries.