Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia. The company said ordinary operations and customer services would continue during the restructuring process, with parent company Inveniam continuing to support the business. Storj management intends to propose a mechanism allowing STORJ tokenholders to participate in the reorganized company’s equity, though specifics on eligibility and allocation remain undisclosed. The STORJ token was trading around $0.072 at the time of the announcement with no significant immediate price reaction. Storj’s bankruptcy filing comes as at least two other crypto companies, Movement Labs and Poolin, also sought Chapter 11 protection in the same month of July.
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