Storj files for bankruptcy, plans equity offer

Storj Labs filed for Chapter 11 bankruptcy to resolve legacy debts. Its network and STORJ token remain operational, and the company plans an equity offer for token holders, pending court approval.

Storj Labs has filed for Chapter 11 bankruptcy protection in West Virginia to address legacy liabilities that predate its current business strategy. Despite this move, Storj assures that its decentralized storage network and the STORJ token remain fully operational, with services continuing across tens of thousands of storage locations in over 100 countries. Supported by Inveniam, Storj is pursuing a court-supervised reorganization. The company intends to propose a plan that could allow STORJ token holders to participate in the ownership of the restructured entity, subject to court approval and legal priorities. Creditors will be prioritized, and details regarding any equity offer for token holders have not yet been disclosed. Storj emphasizes that the bankruptcy filing is a strategic decision, not a shutdown. Customer services and employee obligations will continue as usual throughout the process. The price of STORJ showed no significant immediate reaction following the announcement.