Storj Labs filed for voluntary Chapter 11 bankruptcy, causing STORJ token to drop 20% to $0.06.
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Storj Labs filed for voluntary Chapter 11 bankruptcy on July 26, with STORJ token declining 19% to $0.06 in the aftermath. The decentralized storage firm initiated the Chapter 11 proceeding to address legacy liabilities, according to filings.
The bankruptcy filing comes amid broader pressures in the crypto sector. The precise composition and scale of the legacy liabilities remain unclear from available disclosures. The Chapter 11 process will determine how Storj Labs restructures its obligations and whether the business continues operating under a reorganization plan or pursues liquidation.