Storj Files for Chapter 11 as Parent Backs Reorganization

Storj Labs has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia. The company behind the decentralized cloud storage network Storj says it will continue operating normally and its parent, Inveniam, supports the reorganization.

The filing aims to address legacy obligations while preserving ongoing business operations. In a blog post, Storj said it does not anticipate any interruptions in service to customers, subject to court oversight.

STORJ traded around $0.0608, down about 18.1% over the prior 24 hours, according to CoinGecko. The token carried a market capitalization of roughly $26 million.

In an open letter to its token community, Storj said it intends to propose a mechanism for token holders to participate in the equity of the restructured company. However, this plan must be approved through the court process and respects bankruptcy law's priorities among stakeholders.