Storj Labs Files for Bankruptcy Amid Legacy Obligations

Storj Labs, one of the oldest decentralized infrastructure projects in crypto, has filed for Chapter 11 bankruptcy protection in the United States.

The company claims that its business is strong and right-sized but is being held back by legacy obligations from an earlier chapter. Storj's Director of Software Engineering, Kaloyan Raev, said that this process will allow them to resolve these issues in an orderly way and come out the other side with a clean foundation.

The company will continue operating throughout the bankruptcy process, and its decentralized storage network will remain operational. However, any plan to grant equity to STORJ token holders would be subject to U.S. bankruptcy rules, creditor priorities, and court approval.