Storj Labs Files for Bankruptcy Protection; Token Holders Explore Participation in Company Shares

Storj Labs, a decentralized storage provider, filed for Chapter 11 bankruptcy protection in the U.S. The company will continue operating its network and customer services during the restructuring process, exploring mechanisms to allow STORJ token holders to participate in equity of the restructured entity. Storj Labs announced the voluntary bankruptcy filing with the U.S. Bankruptcy Court for the Northern District of West Virginia, stating it will maintain regular operations under court supervision while its parent company Invenium plans to continue business support. The company explained in a public letter that most of its debt arose before its current strategy, requiring significant business growth to resolve, while emphasizing the network remains operational and token utility unchanged. Management plans to propose token holder participation in restructured company equity post-restructuring, though details on qualification criteria, token snapshots, lockups, or equity allocation remain undisclosed. This approach must follow bankruptcy procedure priorities and court approval.