Storj Labs filed for Chapter 11 bankruptcy in the United States, seeking to eliminate its financial obligations while continuing its operations.
The company filed the lawsuit on July 26 in the US Bankruptcy Court for the Northern District of West Virginia. Storj said it expects to continue operating normally and does not expect any disruption to customer service during the renovation.
The filing follows nearly $35 million in funding and comes as Storj focuses on its cloud storage business. The company is reviewing past acquisitions and redundant services to support its business.
Storj officials described the booking as a restructuring rather than a closure. Kaloyan Raev, Director of Software Engineering, he said the startup business remains strong but is burdened by past experiences.
“This process will help us solve them in an orderly manner and come out on the other side with a clean slate.” Raev said.
The company said the restructuring would allow management, the community, brand owners, and potential investors to share ownership of the restructured business. Following the news, Storj Price dropped to 9.7% and is currently trading at $0.066.
WEMIX Stablecoin Hit by $6.25M Smart Contract Exploit
Separately, Wemade’s blockchain platform WEMIX has confirmed a security breach affecting its WEMIX stablecoin.
The event he says it happened around 6:18 pm on July 26, after the owners of the smart contract connected to WEMIX were compromised. The breach allowed approximately $6.25 million worth of WEMIX tokens to be issued and moved.
WEMIX said it has identified addresses believed to be linked to the scheme and is tracking the movement of the goods.
Investigation and Response Continued
The company is working with major cryptocurrency exchanges and blockchain security companies to monitor the flow of stolen funds. It may also cooperate with law enforcement agencies if necessary.
WEMIX said it will release more details and responses as the investigation continues. Users are encouraged to rely on official announcements and avoid unconfirmed or speculative information about the event.
Was this post helpful?
Story Ends Here
Trust CoinPedia:
CoinPedia has been providing accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our team of expert researchers and journalists, following strict Editorial guidelines based on EEAT (Effectiveness, Expertise, Validity, Trustworthiness). Each article is checked against the standard to ensure accuracy, transparency, and reliability. Our review policy ensures an unbiased review when we develop exchanges, platforms, or tools. We strive to provide timely updates on everything crypto & blockchain, from startups to industry executives.
Investment Disclaimer:
All opinions and information shared represent the author’s opinion on market conditions. Please do your own research before making any financial decisions. Neither the author nor the publisher is responsible for your financial decisions.
Offers and Promotions:
Sponsored content and affiliate links can be viewed on our website. Advertisements are clearly identifiable, and our content is not independent of our advertisers.
Read the Next Article
