Crypto News Today: Storj Files Chapter 11 Bankruptcy and WEMIX Loses $6.25M in Same Day Security Breach

Storj Labs has voluntarily filed for Chapter 11 bankruptcy in the United States, seeking to resolve legacy financial obligations while continuing its operations.

The company filed the case on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia. Storj said it expects to continue operating normally and does not anticipate interruptions to customer services during the restructuring process.

The filing follows approximately $35 million in fundraising and comes as Storj focuses on its core decentralized cloud storage business. The company is also reviewing previous acquisitions and non-essential operations to streamline its business.

Storj executives described the filing as a restructuring effort rather than a shutdown. Kaloyan Raev, Director of Software Engineering, said the underlying business remains strong but has been weighed down by legacy obligations.

“This process lets us resolve them in an orderly way and come out the other side with a clean foundation.” Raev Said. 

The company said its restructuring could eventually allow management, the decentralized community, token holders, and potential investors to share ownership of the reorganized business. Following the news, Storj Price dropped to 9.7% 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 involving its WEMIX stablecoin.

The incident reportedly occurred around 6:18 p.m. on July 26, after the owner authority of a smart contract linked to WEMIX was compromised. The breach allegedly allowed approximately $6.25 million worth of abnormal WEMIX tokens to be issued and moved on-chain.

WEMIX said it has identified addresses believed to be connected to the attack and is tracing the movement of the assets.

Investigation and Response Continue

The company is working with major cryptocurrency exchanges and blockchain security firms to monitor the movement of the stolen funds. It may also cooperate with law enforcement agencies if necessary.

WEMIX said it will release further details and response measures as the investigation progresses. Users have been urged to rely only on official announcements and avoid unverified information or speculation surrounding the exploit.