Storj Labs Files for Bankruptcy Amid Legacy Liability Woes

Storj Labs, a decentralized cloud storage provider, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia. The company cited significant legacy liabilities that predate its current strategy as the reason for the filing.

The restructuring process will allow Storj to keep its network running and continue providing services to customers while addressing its financial obligations. According to the company, ordinary operations and customer services will continue during this time, subject to court oversight.

Storj's parent company, Inveniam, will also support the business throughout the restructuring process. The company has not disclosed how tokenholder eligibility would be determined or how much equity might be allocated to them in the reorganized company.