Decentralized cloud storage firm Storj Labs filed for Chapter 11 bankruptcy in West Virginia to address legacy obligations while pledging to keep services running.

The restructuring plan proposes sharing ownership of the reorganized company among management, investors and token holders, who typically receive nothing in a Chapter 11 process.

The filing closes a week that saw BitMEX and BitMart announce solvent wind-downs and Movement Labs seek Chapter 11 protection, as capital and attention continue to shift from crypto to artificial intelligence.

Storj Labs said it filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of West Virginia, becoming the fourth crypto company in seven days to announce a failure or wind-down as investor interest moves toward AI.

The filing is intended to resolve what the company described as legacy obligations from an earlier period while keeping the business operating. Storj said it does not expect service interruptions and will continue to provide services, which matters for users of decentralized infrastructure that depends on continuity even when a parent company is restructuring.

Movement Labs, the developer behind the Movement blockchain, also filed for bankruptcy protection. Crypto exchanges BitMEX and BitMart both announced closures.

Storj operates a decentralized cloud storage network that pays individuals and businesses to rent out unused disk space rather than running its own data centers. The company was acquired last year by Inveniam, which Storj said supports the reorganization and continues to back the business. Storj also said it is disposing of previous acquisitions and non-essential operations.

"The business underneath is strong and right-sized," 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. Nearly $20 million worth of the token traded against a market value of about $27 million, meaning close to the entire supply changed hands in a single day. The token is down 79% over the past year and 98% from its March 2021 peak of $3.81.

The restructuring proposal includes 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 comes after an unusually heavy week for the sector. 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. The company pointed instead to a strategic review that followed about $200 million in regulatory fines and a sale process that did not find a 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. Its BMX token fell 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, unraveled after 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 options to raise money and fewer buyers if they need an exit.