Storj files for bankruptcy, explores equity path for tokenholders
Storj Labs has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of West Virginia, saying it will keep its decentralized storage network and customer services running during restructuring. The company says its legacy liabilities are too large to fix through growth alone and that its parent, Inveniam, will continue supporting operations. A notable part of the process is Storj’s plan to explore a path for STORJ tokenholders to participate in the reorganized company’s equity. The company has not said how eligibility would be determined, whether there would be a snapshot or lockup, or how much equity could be offered. Any plan would still need to follow bankruptcy priority rules and receive court approval. Storj said the network is operating normally and the token’s utility is unchanged. The STORJ token showed little immediate price movement after the filing.
