Storj Files for Chapter 11 Bankruptcy as STORJ Token Plunges 17%

Decentralized cloud storage company Storj Labs has voluntarily filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia as it seeks to restructure its finances while keeping its business running without disruption.

In an open letter to its community, Storj’s management and board described the move as an accelerated financial reorganization designed to deal with obligations that largely predate its current business strategy.

The company said it had already scaled back its operations with a leaner team and tighter cost controls while continuing to receive support from Inveniam, but acknowledged that its historical liabilities could not be addressed through business growth alone.

Financial Overhaul

The team said the Chapter 11 process provides a transparent framework to resolve those obligations and gives the company time to present a long-term business plan. Storj also sought to reassure users and token holders that its decentralized storage network remains fully operational and that the utility of the STORJ token within the network has not changed as a result of the bankruptcy filing.

… Continue reading the full article at the original source below.