Daniel Simerman Seeks $18.4M in MOVE Tokens Dispute Against MVMT Labs
On Tuesday, December 3, 2024, Daniel E. Simerman filed a complaint in the US District Court for the Southern District of New York against MVMT Labs, Inc., a Delaware-based internet startup. The lawsuit, which demands a jury trial, centers around allegations of breach of contract related to an agreement made between Simerman and the defendant regarding the provision of consulting services.
According to the complaint, Simerman, an expert in decentralized computer networks and a former consultant for notable blockchain companies, was engaged by MVMT Labs to assist with financing, product design, and market strategies. Under the terms of their agreement, Simerman was to receive a monthly cash fee and a share of the digital assets, specifically MOVE tokens, to be issued by the company.
The complaint states that MVMT Labs terminated the agreement without valid cause or prior notice, denying Simerman his promised entitlement to the MOVE tokens. The tokens, which began pre-market trading shortly after the termination, had a reported market value of approximately $18.4 million at the time of the complaint’s filing. Simerman claims that the company’s actions have caused him significant financial harm.
Simerman’s complaint details his qualifications and experience in the blockchain sector, noting his involvement with various successful startups and his role as a principal author of key industry papers. He asserts that MVMT Labs, founded in January 2023 by entrepreneurs Cooper Scanlon and Rushi Manche, sought his expertise to help establish their decentralized network business, which focuses on integrating the Move programming language into existing blockchain ecosystems.
The agreement between Simerman and MVMT Labs stipulated that he would provide 20 hours of consulting services per week in exchange for a monthly fee of $9,000 and a one-time grant of 0.4% of the MOVE tokens generated by the company. The complaint emphasizes that Simerman’s right to the tokens was not contingent upon the duration of his engagement or the volume of services rendered, stating that he earned the tokens upon the execution of the agreement.
Throughout the duration of their partnership, the complaint alleges that MVMT Labs experienced financial difficulties and sought to reduce its cash payments to Simerman. Despite these challenges, there was no indication from the company that Simerman’s entitlement to the MOVE tokens would be affected by the adjustments to his cash compensation.
Simerman claims he fulfilled all service obligations as required and that MVMT Labs did not raise any concerns regarding his performance. However, on November 22, 2024, the company issued a notice to Simerman, purportedly terminating his rights under the agreement, including his right to the MOVE tokens. The lawsuit contends that this termination constitutes an anticipatory repudiation and complete breach of contract.
In addition to seeking the value of the MOVE tokens, Simerman is also pursuing recovery for attorneys’ fees and related costs, as stipulated in the agreement. He is requesting that the court enter a judgment in his favor for damages not less than $18.4 million, along with interest and any other relief deemed appropriate by the court.
Please contact BlockTribune for access to a copy of this filing.
