Storj Files Chapter 11 Amidst Reorganization Plans

Storj Labs has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of West Virginia. The company aims to address its older liabilities while continuing to operate its decentralized storage business.

The filing has not caused a technical shutdown, and Storj's network remains operational, serving customers through tens of thousands of storage locations across more than 100 countries.

The STORJ token retains its current role in the ecosystem, but holders do not have existing equity rights. The company plans to propose a mechanism that could give qualifying STORJ holders equity in the reorganized company, although this would require a court-approved reorganization plan and fit within the priority given to existing creditor claims.