Storj Files Chapter 11 Amid Legacy Debt Burden

Storj Labs has filed for Chapter 11 bankruptcy protection in a federal court in West Virginia. The company says its network remains operational and STORJ tokens continue to function as normal.

The decision, announced on July 26, aims to resolve legacy liabilities that predate the current business strategy. These debts are old and cannot be overcome through growth, according to Kaloyan Raev, director of software engineering.

Token holders can expect no immediate changes, with data continuing to move across tens of thousands of storage locations in over 100 countries. However, Storj plans to offer token holders equity in the rebuilt company.