Storj Files for Bankruptcy Amid Restructuring Efforts

Storj Labs has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia.

The company, which provides decentralized cloud storage services, said it will continue to operate and provide customer support during the restructuring process. Inveniam, Storj's parent company, will also support the business.

Storj's liabilities largely predate its current strategy and are too substantial to resolve through business growth alone, according to the company.

The bankruptcy filing comes as an unusual test of whether utility-token holders can participate in the ownership of a company emerging from bankruptcy. Storj plans to propose a mechanism allowing tokenholders to participate in the reorganized company's equity.