The company explained the decision to initiate bankruptcy proceedings as necessary to settle "historical liabilities" accumulated over previous years. According to representatives from Storj Labs, the debt burden was limiting further business development, and relying solely on revenue growth proved insufficient to resolve the issue.
Storj Labs assured that the bankruptcy procedure will not halt the platform's operation. The decentralized data storage network will continue to function, customer service will not be interrupted, and the parent company, Inveniam, will continue supporting operational activities throughout the legal proceedings, as stated in the company's announcement.
Storj Labs management announced its intention to propose a mechanism that would allow holders of native STORJ tokens to receive a stake in the reorganized business alongside existing investors and management.
Storj is one of the oldest infrastructure projects in the crypto industry. The project was launched in 2014 as an open-source, decentralized cloud data storage network that allows users to rent out their unused disk space to other network participants instead of using centralized cloud services.
Previously, Movement Labs, the developer of the blockchain Movement, filed for bankruptcy in a Delaware court. According to court documents, the company's assets are estimated at $100,000–$500,000, while its liabilities to creditors range from $1 million to $10 million.
