Storj Labs files Chapter 11 after raising $35 million

Storj Labs has filed for Chapter 11 bankruptcy protection after raising about $35 million through venture funding, grants and its 2017 STORJ token sale. Summary Storj filed Chapter 11 to restructure legacy debt while maintaining its decentralized cloud storage services. The company plans to propose shared ownership for management, investors, community members, and STORJ holders. STORJ fell after the filing, while token utility and network operations remained unchanged, Storj said. The company filed the case on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512. According to Storj’s official restructuring announcement, the filing aims to address older financial obligations while allowing the decentralized cloud storage company to continue operating. Storj said customer services, its network and its main business would continue during the court process, subject to bankruptcy rules and court approval. Storj seeks to address legacy debt Storj described the Chapter 11 case as a restructuring rather than a shutdown. The company said it plans to continue normal operations while it works through debts linked to an earlier stage o...