Storj's (STORJ) token fell about 19% over 24 hours to roughly $0.06 after the decentralized storage provider filed for voluntary Chapter 11 bankruptcy protection on July 26 in the U.S.
Bankruptcy Court for the Northern District of West Virginia.
Storj Labs, Inc. said the filing is meant to resolve legacy obligations tied to earlier acquisitions and non-core operations while preserving its decentralized storage network, customer services, and day-to-day operations, which it expects to continue without interruption, subject to court approval.
The firm plans to keep operating in the ordinary course throughout the process, Storj Labs announced.
Per the statement, the restructuring is designed to right-size the business and align ownership among management, the decentralized community, token holders, and investors.
