Storj Files Chapter 11 to Realign Ownership and Clear Debt

Decentralized cloud storage company Storj has filed for Chapter 11 bankruptcy protection in the United States to restructure its balance sheet. The move aims to clear up old financial liabilities that had built up before the development of its current direction. According to Storj Labs, core operations are not impacted by the filing, and users will still be able to use the decentralized storage system without any interruptions to services.

The company's parent firm Inveniam is still dedicated to helping Storj in the restructuring process, focusing on its core decentralized storage business. This includes selling non-core entities and previous acquisitions, which will help streamline operations and give the company a firmer financial footing for growth.

Storj plans to create a wider ownership base following restructuring, sharing ownership in the decentralized management with community members and STORJ token holders. The long-term goal is to align governance with the project's decentralized origins.