Storj Chapter 11 Raises the Biggest Question for STORJ Token Holders

Storj filed for bankruptcy protection on Sunday. The company says its network still works and STORJ tokens still work. Its owner made similar promises nine months ago.

Storj now wants to hand token holders a slice of the rebuilt company. But a judge must approve that. And creditors get paid first.

Why Storj Filed Chapter 11

Storj Labs filed in a federal bankruptcy court in West Virginia. The case number is 5:26-bk-00512.

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Chapter 11 is not a shutdown. It lets a company keep trading while a court helps it clear its debts.

Storj says those debts are old. They came from an earlier phase of the business. The company cannot grow its way out of them.

"The business underneath is strong and right-sized. What holds it back are legacy obligations from an earlier chapter."

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