MVMT Labs, the company associated with the Movement blockchain project, has filed for Chapter 11 bankruptcy in Delaware, adding a formal court process to a year of internal and market pressure around the network.

PacerMonitor lists the case as MVMT Labs, Inc. Bankruptcy (1:26-bk-11113) in the Delaware Bankruptcy Court, with a July 15 filing date. The docket identifies the case as Chapter 11 and shows follow-on notices for creditor deadlines and upcoming hearings.

CoinDesk reported that the company disclosed fewer than 1,000 creditors, assets between $100,000 and $500,000, and liabilities above $1 million. The filing follows a difficult stretch for Movement, an Ethereum layer-2 network built around the Move programming language, after controversy over the launch of its MOVE token.

That controversy centered on a market-making arrangement that CoinDesk previously reported allowed 66 million MOVE tokens to be sold shortly after the token debuted. The sale contributed to a price decline, prompted internal review, and led Binance to ban a market-making account tied to the launch. Movement also began a token buyback program and brought in outside investigators.

The bankruptcy filing does not by itself resolve what happens to Movement's broader ecosystem or to separate entities using the Movement name. It does, however, put MVMT Labs' obligations into a court-supervised restructuring process while the project tries to move past the token-launch fallout.