Storj Labs Seeks Chapter 11 Protection, Says Services Will Remain Online Through Restructuring

Storj Labs, the decentralized cloud storage provider, has filed for Chapter 11 bankruptcy protection as it works to address legacy financial obligations while keeping its network and products operating. The company filed on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26bk00512. Storj is positioning the move as a court-supervised restructuring rather than a shutdown. It said customer services, its distributed network, and its core business are expected to continue during the process, subject to bankruptcy rules and court approval. Storj added it "does not anticipate any interruptions" in service, language that signals an expectation rather than a guarantee. Kaloyan Raev, Storj's director of software engineering, described the business as "strong and rightsized" but limited by "legacy obligations from an earlier chapter." The company has not released a full breakdown of assets, liabilities, or creditors; those details will be examined through court filings as creditor claims are reviewed and any reorganization plan is evaluated. As part of the restructuring, Storj said it is tightening its focus on its core distributed cloud business and moving away from prior acquisitions and non-essential operations. The filing comes about nine months after Inveniam announced an agreement in October 2025 to acquire Storj. Under that deal, Storj was expected to remain a separate legal entity and operate as an Inveniam subsidiary while maintaining relationships with customers, suppliers, and the community. Storj's network depends on independent node operators who contribute unused storage capacity. The STORJ token is used for payments across parts of the network, including compensation for node operators. Following the filing, Storj's website continued marketing its storage, file access, and compute offerings, and the company has not announced changes to the token's role. Management also said management, community members, STORJ holders, current investors, and potential new investors could share ownership in any reorganized company. That framing was presented as a plan rather than a finalized transaction. Storj has not disclosed conversion terms, eligibility requirements, valuation, or a timeline. Any ownership changes would need to be set out in a formal Chapter 11 plan and approved by creditors and the court. As of now, holding STORJ does not provide token holders with confirmed equity. Storj has raised roughly $35 million through a mix of its 2017 STORJ token sale, venture funding, and grants. The company has cited a $30 million token sale completed in May 2017, which it said reached its target in seven days, and a $3 million seed round announced in February 2017 involving investors linked to Qualcomm Ventures and Techstars. CB Insights lists total equity funding at about $5.05 million across six rounds; combined with the token sale, publicly reported funding totals about $35 million. On the operating side, Storj introduced new storage and egress pricing effective July 1, 2026, while keeping legacy terms for some customers on older plans. Storj's Chapter 11 filing adds to a broader list of crypto-related insolvency proceedings taking different restructuring routes. Poolin pursued Chapter 11 while seeking an asset sale of bitcoin mining assets. Movement Labs filed for Chapter 11 in July, with reported liabilities that could reach $10 million, while blockchain development continued under a separate developer. Storj has not yet published a detailed reorganization plan, a creditor schedule, or a finalized ownership framework. Future court filings are expected to provide the clearest view into the company's debts, financing needs, any asset sales, and proposed treatment of token holders and other stakeholders. Bottom line: Storj is presenting Chapter 11 as a controlled restructuring designed to keep customer services running and preserve its decentralized storage network while addressing earlier obligations. The eventual outcome for token holders, investors, and creditors will hinge on disclosures and approvals during the Chapter 11 process.