Storj Labs has opened a Chapter 11 restructuring case while insisting its decentralized cloud services will keep running.
Key facts
- Filing: Chapter 11 case filed July 26 in U.S. Bankruptcy Court for the Northern District of West Virginia, case no. 5:26-bk-00512.
- Funding raised: roughly $35 million total from the 2017 STORJ token sale (~$30M), grants and venture capital (CB Insights lists ~$5.05M in equity across six rounds, plus a $3M seed round in Feb 2017).
- Recent corporate move: Inveniam announced an agreement to acquire Storj in October 2025; Storj was to operate as an Inveniam subsidiary while retaining its services and community relationships.
What Storj says
Storj frames the filing as a restructuring, not a shutdown. In an official restructuring notice the company said the Chapter 11 case is aimed at resolving legacy financial obligations from earlier stages of the business while allowing operations to continue. Customer services, the Storj network and core business functions are expected to remain online through the court process, subject to bankruptcy rules and any required court approvals.
Kaloyan Raev, Storj’s director of software engineering, characterized the business as “strong and right-sized” but still hindered by “legacy obligations from an earlier chapter.” The company also said it is streamlining to focus on its core distributed cloud storage, compute and file-access offerings and is shedding earlier acquisitions and non-essential operations.
What’s unchanged (so far)
- Storj’s website continues to advertise cloud storage, file-access and compute products.
- The STORJ token remains part of the network’s payment and node-compensation system; Storj has not announced changes to the token’s role.
- Storj expects “no interruptions” to customer services during the bankruptcy process — but that is an expectation, not a guarantee, and some decisions will require court approval.
Implications for users, token holders and investors
- The filing does not list a full schedule of assets, liabilities or creditors, and no formal reorganization plan has been released.
- Storj said management, community members, STORJ holders, current investors and potential new investors could share ownership of a reorganized company, but any such ownership proposal must be included in a formal Chapter 11 plan and win creditor and court approval. Conversion terms, eligibility, valuations and timelines have not been disclosed; holding STORJ currently does not equal a confirmed equity stake.
- The bankruptcy process could reshape Storj Labs’ ownership, finances and corporate structure, and future court filings will be the primary source of new details.
Context in the crypto industry
Storj’s Chapter 11 filing follows a trend of crypto-related companies seeking court-supervised restructuring. Some peers pursued asset sales under bankruptcy (e.g., Poolin’s Chapter 11 around a Texas mining-asset sale), while others (like Movement Labs) have filed with liabilities in the low tens of millions and continued development efforts under separate teams.
Background
- Token sale: Storj completed a $30M STORJ token sale in May 2017, hitting its target in seven days.
- Venture rounds: Storj reported a $3M seed round in Feb 2017 involving investors connected to Qualcomm Ventures and Techstars.
- Acquisition: Inveniam’s October 2025 acquisition announcement said Storj would remain a separate legal entity and continue operations as a subsidiary; that deal preceded this bankruptcy filing by about nine months.
What to expect next
Storj must file detailed schedules, creditor lists and a reorganization plan in court. Those documents will clarify debt levels, proposed financing or asset sales, and any path for token holders or other stakeholders to gain equity. Until those filings appear, the company’s public statements offer only a partial picture.
We’ll follow court filings and Storj’s updates for developments on creditor claims, the formal Chapter 11 plan, and any concrete proposals affecting STORJ token holders and customers.
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