Decentralized storage firm Storj seeks bankruptcy protection while proposing a court-approved equity pathway for STORJ tokenholders.
Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of West Virginia. The company aims to restructure legacy liabilities while maintaining network operations under court oversight.
Storj stated that its current liabilities predate its latest strategy and cannot be resolved through growth alone. The firm plans to propose a mechanism allowing STORJ tokenholders to participate in ownership post-restructuring, a rare test for utility-token holders in bankruptcy.
STORJ showed no immediate price reaction, trading at $0.072 following the announcement. The company assured customers that services would continue uninterrupted during the process.