Storj files for bankruptcy, explores equity path for tokenholders

Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection. The company said it plans to keep its network running while restructuring legacy liabilities and exploring an ownership pathway for STORJ tokenholders.On Sunday, Storj said it filed the voluntary case in the US Bankruptcy Court for the Northern District of West Virginia. The company said ordinary operations and customer services would continue during the process, subject to court oversight, while its parent company, Inveniam, would continue to support the business.The restructuring could become an unusual test of whether utility-token holders can participate in the ownership of a company emerging from bankruptcy.In an open letter to its community, Storj said its liabilities largely predate its current strategy and are too substantial to resolve through business growth alone. It said the network continues to operate normally and its token’s utility is unchanged. STORJ showed no significant immediate price reaction following the announcement, trading around $0.072 at the time of writing, according to CoinGecko.Storj explores equity pathway for tokenholdersStorj said management intends to p...