Storj Labs Seeks Bankruptcy Protection After Raising $35M
Key Insights:
- Storj Labs filed Chapter 11 after raising about $35M while keeping customer services running.
- It proposed shared ownership for management token holders and investors after restructuring.
- STORJ fell 16% after the filing as the company moved to resolve legacy debt through Chapter 11.
Storj Labs has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, Northern District of West Virginia. It previously raised approximately $35 million through equity funding, grants, and a token sale.
The filing aims to address legacy debt while allowing the decentralized cloud storage company to continue operating during the court-supervised restructuring process. The company said customer services will remain uninterrupted throughout the proceedings.
It also outlined an uncommon restructuring proposal that could give management, token holders, investors, and the community ownership interests in the reorganized business.
The filing comes about nine months after Inveniam announced its acquisition of Storj. At that time, Inveniam said Storj would retain its leadership, existing services, community relationships, and the STORJ token as part of its decentralized infrastructure. Storj has not yet published a complete reorganization plan, creditor schedule, or final ownership structure.
