Cloud data firm Storj files for Chapter 11, extending a week of crypto failures. Token slides 16%
Cloud storage firm Storj has filed for Chapter 11 bankruptcy to address legacy obligations while continuing operations. This filing is part of a broader wave of failures in the cryptocurrency sector, including the closure of exchanges like BitMEX.
Why it matters
The bankruptcy highlights the volatility and financial instability currently affecting decentralized infrastructure and crypto-native businesses.
The filing, lodged in the U.S. Bankruptcy Court for the Northern District of West Virginia, is intended to resolve what the company called legacy obligations from an earlier period while keeping the business running. Storj said it does not expect service interruptions and will continue operating.
Of the other firms, Movement Labs, the developer behind the Movement blockchain, also filed for bankruptcy protection. Crypto exchanges BitMEX and BitMart both announced closures.
Storj runs a decentralized cloud storage network, paying individuals and businesses to rent out unused disk space rather than operating its own data centers. Last year, it was acquired by Inveniam , which the company said endorses the reorganization and continues to support it. Storj said it is disposing of previous acquisitions and non-essential operations.
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