- Storj Labs has filed for Chapter 11 bankruptcy protection.
- The company says its storage network and customer services will continue operating.
- STORJ fell roughly 20% following the announcement.
Storj Labs has filed for Chapter 11 bankruptcy protection in the United States as it works to restructure the company and eliminate legacy financial obligations.
The decentralized storage provider said the filing is intended to resolve liabilities from previous acquisitions while allowing its storage network and customer services to continue operating throughout the restructuring process.
Management says the bankruptcy is designed to strengthen the company's long-term future and better align ownership between the team, investors, token holders and the broader decentralized community.
Following the announcement, the STORJ token dropped around 20%, extending a difficult month for the crypto industry that has also seen BitMEX announce its shutdown and several other crypto firms enter bankruptcy or begin winding down operations.
