Storj Labs Files for Bankruptcy Amid Crypto Industry Woes

The decentralized storage provider Storj Labs has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia. The firm's token, STORJ, fell by around 20% over 24 hours to approximately $0.06 after the filing.

In a statement, Storj Labs said the move is aimed at resolving legacy obligations tied to earlier acquisitions and non-core operations while preserving its decentralized storage network, customer services, and day-to-day operations.

Kaloyan Raev, director of software engineering, described the filing as 'a decisive, positive step'. He added that the underlying business is strong but was being held back by legacy obligations from an earlier chapter. The firm plans to operate in the ordinary course throughout the process and has received support from its parent company Inveniam.