RESOLVING THE LEDGER
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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.
"The business underneath is strong and right-sized," said Kaloyan Raev, the company's director of software engineering, said in a statement. "What holds it back are legacy obligations from an earlier chapter."
The company’s STORJ token fell 16% to about 6 cents. Almost $20 million worth of the token changed hands against a market value of about $27 million, meaning close to the entire supply turned over in a day. The token is down 79% over the past year and 98% from its March 2021 peak of $3.81.
The restructuring proposal contains a provision rarely seen in bankruptcy: Storj said it plans to share ownership of the reorganized company among management, token holders and investors.
Token holders normally have no legal claim on an issuer and receive nothing in a Chapter 11 process.
The filing extends an unusually heavy week. BitMEX, the exchange that invented the perpetual swap, said on July 23 it would shut down after 11 years, with daily volume down to roughly $400,000 and its BMEX token falling more than 90%.
Its parent, HDR Global Trading, said the platform was not insolvent and that assets exceeded liabilities, pointing instead to a strategic review that followed some $200 million in regulatory fines and a sale process that found no buyer.
BitMart announced its own wind-down on Sunday, halting new deposits and trading orders immediately, ending all trading on Aug. 26 and setting a January 2027 closure, with its BMX token down 58% on the news.
Movement Labs filed for Chapter 11 on July 21 after a year of turmoil. The Ethereum layer-2, built on the Move programming language originally developed at Meta, unravelled following the December launch of its MOVE token.
The filings land in a market where investor capital and attention have moved decisively toward artificial intelligence, leaving marginal crypto businesses with fewer places to raise money and fewer buyers if they need an exit.
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