Decentralized cloud storage company Storj Labs has voluntarily filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia to restructure its finances while maintaining business operations. The company stated that the proceedings would allow it to address legacy obligations that could not be resolved through business growth alone, while continuing to receive support from partner Inveniam. Following the announcement, the STORJ token plummeted by over 17% to $0.06. Storj reassured users that its decentralized storage network remains fully operational and that the utility of the token within the network has not changed. The company plans to propose a mechanism allowing token holders to participate in the equity of the restructured business, subject to court approval.
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