Decentralized cloud storage provider Storj Labs has become the latest in crypto to file for bankruptcy, over what the company described as “legacy obligations.”Storj voluntarily filed for a Chapter 11 restructuring on July 26th at the U.S. Bankruptcy Court for the Northern District of West Virginia.Kaloyan Raev, Director of Engineering at Storj Labs, said filing a Chapter 11 was “a decisive, positive step” toward clearing certain legacy debts holding back the company.“What holds it back are legacy obligations from an earlier chapter,” Raev said. “This process lets us resolve them in an orderly way and come out the other side with a clean foundation.”Storj to cut off non-essential operationsStorj said it will dispose of previous acquisitions and non-essential operations as part of the Chapter 11 restructuring.The filing comes roughly nine months after Storj was acquired by Inveniam, becoming a subsidiary of the latter.The company runs a decentralized cloud storage network, where it incentivizes companies and individuals to rent out spare hard-drive space instead of building and running its own data centers.Storj plans to focus on its core business going forward, which Raev says “is strong and right-sized.” It said the network will continue to operate normally and meet its obligations without any interruptions in service to customers throughout the restructuring process.At the time of writing, STORJ token was down 17.9% over the last 24 hours, trading at $0.06044, amid the news.Crypto sees more operation wind-downsStorj’s filing follows Movement Labs, which also declared bankruptcy on July 15, Cryptopolitan reported.Movement Labs has been embroiled in a controversy over a market-making deal that saw the company hand over 5% of MOVE token supply to an obscure market maker known as Rentech.Rentech dumped the entire 5% supply, about 66 million MOVE, shortly after the token launched, profiting $38 million. MOVE never recovered from the incident.Several crypto businesses have been forced to close amid the bear market this year.As of July 24th, 95 projects have shut down so far in 2026, with the recent ones being SecondFi, BitMEX, and BitMart, among others.If you're reading this, you’re already ahead. Stay there with our newsletter.