Storj Labs Files for Chapter 11 Bankruptcy to Address Legacy Obligations
Storj Labs, a decentralized cloud storage provider built on blockchain technology and an alternative to Amazon S3, has filed for Chapter 11 bankruptcy in the U.S. Northern District of West Virginia. The company described the filing as a strategic move to resolve legacy obligations while continuing operations without disrupting customer service. Founded in 2014, Storj aimed to offer cheaper cloud storage by using peer-to-peer networks instead of traditional data centers. It charged significantly less than Amazon S3 for both storage and egress costs—$4 per terabyte a month versus $23 on standard S3, and $7 for egress compared to $90 from AWS. The company plans to restructure its ownership by potentially offering equity in the reorganized business to STORJ token holders. However, any such arrangement must be approved by the bankruptcy court. Payments owed to node operators are currently on hold due to the filing.
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Topics: Amazon S3 blockchain Chapter 11 bankruptcy cloud storage