Cloud data firm Storj files for Chapter 11, extending a week of crypto failures. Token slides 16%
The decentralized data storage company says operations continue and proposes that token holders take equity in the restructured business — an unusual arrangement in bankruptcy.
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Summary
- Decentralized cloud storage firm Storj Labs filed for Chapter 11 bankruptcy in West Virginia to address legacy obligations while pledging to keep services running.
- The restructuring plan proposes sharing ownership of the reorganized company among management, investors and token holders, who typically receive nothing in a Chapter 11 process.
- The filing caps a week that saw BitMEX and BitMart announce solvent wind-downs and Movement Labs seek Chapter 11 protection as capital and attention continue to shift from crypto to artificial intelligence.
