Storj Labs Files for Chapter 11 Bankruptcy Protection Amid Legacy Liability Concerns

Storj Labs, a decentralized cloud storage provider, has filed for voluntary Chapter 11 bankruptcy protection in the United States. The company made the filing in the US Bankruptcy Court for the Northern District of West Virginia.

According to Storj, the restructuring is aimed at addressing legacy liabilities that cannot be resolved through growth alone. The company emphasizes that its network will continue to run and customer services will remain intact during the process.

In a statement, Storj said it plans to propose a pathway for STORJ token holders to participate in the equity of a reorganized company, subject to bankruptcy priorities and court approval.