Storj Labs has filed for Chapter 11 bankruptcy

Decentralized cloud storage provider Storj Labs has become the latest in crypto to file for bankruptcy, over what the company described as “legacy obligations.”

Storj voluntarily filed for a Chapter 11 restructuring on July 26th at the U.S. Bankruptcy Court for the Northern District of West Virginia.

Kaloyan Raev, Director of Engineering at Storj Labs, said filing a Chapter 11 was “a decisive, positive step” toward clearing certain legacy debts holding back the company.

“What holds it back are legacy obligations from an earlier chapter,” Raev said. “This process lets us resolve them in an orderly way and come out the other side with a clean foundation.”

Storj to cut off non-essential operations

Storj said it will dispose of previous acquisitions and non-essential operations as part of the Chapter 11 restructuring.

The filing comes roughly nine months after Storj was acquired by Inveniam, becoming a subsidiary of the latter.

The company runs a decentralized cloud storage network, where it incentivizes companies and individuals to rent out spare hard-drive space instead of building and running its own data centers.

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