Storj Labs Files for Bankruptcy Amid Legacy Liability Concerns

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

The company said it plans to keep its network running while restructuring legacy liabilities and exploring an ownership pathway for STORJ tokenholders.

Storj's liabilities largely predate its current strategy, making them too substantial to resolve through business growth alone.

The company stated that any plan must follow bankruptcy priorities and receive court approval, and management intends to propose a mechanism allowing tokenholders to participate in the reorganized company's equity.