Storj Labs files Chapter 11, says operations will continue as it restructures
Storj Labs, the decentralized cloud-storage provider, has filed for Chapter 11 bankruptcy protection as it works to resolve legacy financial obligations while keeping its network and services running. The company submitted the filing on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512.
What Storj says
- Storj frames the filing as a restructuring, not a shutdown. The company says customer services, its distributed network and its primary business will continue during the court-supervised process, subject to bankruptcy rules and court approval. It added that it “does not anticipate any interruptions” to service, language that represents an expectation rather than a guarantee.
- Kaloyan Raev, Storj’s director of software engineering, described the business as “strong and right-sized” but constrained by “legacy obligations from an earlier chapter.” The company has not published a full list of assets, liabilities or creditors; the bankruptcy court will review finances, creditor claims and any reorganization plan.
Strategic refocus and prior deal with Inveniam
- As part of the restructuring, Storj said it is narrowing its focus to its core distributed cloud business and shedding earlier acquisitions and non‑essential operations.
- Inveniam announced an agreement to acquire Storj in October 2025, with Storj to remain a separate legal entity and operate as an Inveniam subsidiary while maintaining customer, supplier and community relationships. The bankruptcy filing comes roughly nine months after that acquisition announcement.
Token, network and customer impact
- Storj’s decentralized network relies on independent node operators who provide unused storage capacity; the STORJ token facilitates payments across parts of the network, including compensation for node operators. The company’s website continued advertising storage, file-access and compute products after the filing, and Storj has not announced any changes to the token’s role.
- Management said that management, community members, STORJ holders, current investors and potential new investors could share ownership in any reorganized company—but that was described as a plan, not a finalized deal. Storj has not disclosed conversion terms, eligibility rules, valuation details or a timetable. Any ownership changes must be proposed in a formal Chapter 11 plan and win creditor and court approval. Holding STORJ therefore does not currently entitle token holders to confirmed equity.
Funding history and context
- Storj has raised roughly $35 million via a combination of its 2017 STORJ token sale, venture funding, and grants. Notable milestones cited by the company:
- A $30 million STORJ token sale completed in May 2017 (the sale reached its target in seven days).
- A $3 million seed round announced in February 2017 that included investors linked to Qualcomm Ventures and Techstars.
- CB Insights lists Storj’s total equity funding at about $5.05 million across six rounds; combined with the token sale, the publicly reported total reaches roughly $35 million.
Recent business moves
- Storj implemented new storage and egress prices effective July 1, 2026, while maintaining legacy terms for some customers on older plans.
How this fits into the broader crypto landscape
- Storj’s Chapter 11 filing follows other crypto-related insolvency moves that used different restructuring paths. For example, Poolin entered Chapter 11 while pursuing an asset sale of bitcoin mining assets, and Movement Labs filed for Chapter 11 in July with reported liabilities that could reach $10 million while development work on its blockchain continued under a separate developer.
What’s next
- Storj has not yet released a detailed reorganization plan, creditor schedule or final ownership framework. Future court filings will be the primary source for more information about its debts, financing, any asset sales, and the proposed treatment of token holders and other stakeholders.
Bottom line: Storj presents the filing as a controlled restructuring intended to allow the company to keep serving customers and preserve its decentralized storage network while it deals with earlier obligations. The exact shape of the reorganization—and any implications for token holders, investors and creditors—will depend on disclosures and approvals that emerge through the Chapter 11 process.
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