Storj Labs files for Chapter 11 bankruptcy in West Virginia

Storj Labs files for Chapter 11 bankruptcy in West Virginia

The decentralized storage company says operations will continue normally, but bankruptcy proceedings inject real uncertainty into the token's future

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By Editorial Team
Edited by Vivian Nguyen

Storj Labs has entered Chapter 11 bankruptcy proceedings in the US to reorganize its business and address legacy obligations while maintaining its day-to-day operations, according to a recent press release.

The company said it does not expect the filing to affect customer services and will continue operating in the ordinary course during the restructuring process under court supervision.

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Founded in 2014 by Shawn Wilkinson and John Quinn, Storj Labs develops decentralized cloud storage technology that uses a global network of independently operated storage nodes instead of centralized data centers. The platform allows users to rent out spare storage capacity while encrypting, fragmenting and distributing files across multiple locations to improve security and resilience.

The company said the Chapter 11 process will help it eliminate liabilities tied to an earlier phase of its business while sharpening its focus on its core decentralized storage platform.

As part of that effort, Storj is exiting previous acquisitions and non-core activities. It also plans to establish a restructured ownership model that includes management, token holders, the decentralized community and investors, with support from Inveniam, which has endorsed the bankruptcy filing as the best path toward long-term sustainability.

Storj’s native token STORJ fell from $0.074 to $0.063, a decline of approximately 14.9% following the company’s Chapter 11 bankruptcy filing.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
FINANCE
Storj Labs files for Chapter 11 bankruptcy in West Virginia
Storj Labs files for Chapter 11 bankruptcy in West Virginia

The decentralized storage company says operations will continue normally, but bankruptcy proceedings inject real uncertainty into the token's future

By Editorial Team
Edited by Vivian Nguyen

Share

Add us on Google

Storj Labs has entered Chapter 11 bankruptcy proceedings in the US to reorganize its business and address legacy obligations while maintaining its day-to-day operations, according to a recent press release.

The company said it does not expect the filing to affect customer services and will continue operating in the ordinary course during the restructuring process under court supervision.

Advertisement

Founded in 2014 by Shawn Wilkinson and John Quinn, Storj Labs develops decentralized cloud storage technology that uses a global network of independently operated storage nodes instead of centralized data centers. The platform allows users to rent out spare storage capacity while encrypting, fragmenting and distributing files across multiple locations to improve security and resilience.

The company said the Chapter 11 process will help it eliminate liabilities tied to an earlier phase of its business while sharpening its focus on its core decentralized storage platform.

As part of that effort, Storj is exiting previous acquisitions and non-core activities. It also plans to establish a restructured ownership model that includes management, token holders, the decentralized community and investors, with support from Inveniam, which has endorsed the bankruptcy filing as the best path toward long-term sustainability.

Storj’s native token STORJ fell from $0.074 to $0.063, a decline of approximately 14.9% following the company’s Chapter 11 bankruptcy filing.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.