Storj Labs Files for Chapter 11 Bankruptcy Protection, Says Services Will Continue

Storj Labs, the developer of the decentralized cloud storage network Storj, has filed for Chapter 11 bankruptcy protection in a US court.

Business Insider reported on July 26 that the company voluntarily entered Chapter 11 proceedings to address its debt and restructure the business.

Storj Labs said customer services will continue without interruption during the restructuring.

After the process is completed, the reorganized company is set to be jointly owned by management, the community, Storj token holders and investors.

Storj Labs previously raised about $5 million through traditional investment and grants. It also raised about $30 million through a 2017 sale of Storj tokens, bringing its total funding to about $35 million.