- Storj Labs voluntarily filed Chapter 11 on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case No. 5:26-bk-00512.
- Operations, customer service and the decentralized storage network continue without interruption, with parent Inveniam supporting the process.
- The company intends to propose a mechanism allowing STORJ token holders to participate in equity of the restructured firm, subject to court approval and creditor priorities.
- STORJ token declined sharply after the announcement, trading near $0.06.
Storj Labs, Inc. voluntarily filed for Chapter 11 bankruptcy protection on July 26 in the United States Bankruptcy Court for the Northern District of West Virginia, Case No. 5:26-bk-00512, to address certain legacy obligations while preserving ongoing business operations.
The decentralized cloud storage provider stated that its operations, service and network will continue as normal throughout the court-supervised process. Customer services are not expected to face interruptions, and ordinary-course obligations arising during the restructuring are expected to be met, subject to court approvals, according to the company’s restructuring FAQ.
“This is a decisive, positive step,” said Kaloyan Raev, Director of Software Engineering of Storj, in the official announcement. “The business underneath is strong and right-sized. What holds it back are legacy obligations from an earlier chapter. This process lets us resolve them in an orderly way and come out the other side with a clean foundation — and with a plan for management, our token community, and our investors to share in the ownership of the restructured company, taking Storj back to its strong decentralized roots, serving our clients.”
Parent company Inveniam, which acquired Storj in October 2025, has continued to support the business and endorses the reorganization. Storj has focused on its core operations while dispositioning previous acquisitions and non-essential activities.
In an open letter to the token community, the company said the network continues to operate normally and the token’s utility remains unchanged. It intends to propose, as part of a plan of reorganization, a mechanism for token holders to participate in the equity of the restructured company. Eligibility, mechanics and terms will be developed during the process and disclosed formally. Any such plan remains subject to court approval, legal priorities and definitive documentation, with creditors paid first under standard bankruptcy rules.
According to BeInCrypto, approximately 143.8 million STORJ tokens trade freely out of a total supply of 425 million. The token fell about 15-19% following the filing, trading near $0.06 as of July 27, after earlier sitting near $0.074. The token has declined roughly 60% since the Inveniam acquisition announcement when it traded near $0.1872.
Storj described the Chapter 11 case as an accelerated reorganization rather than a shutdown, aimed at resolving liabilities that predate the current strategy and cannot be outgrown through normal business expansion. The company is pursuing an accelerated timeline and will publish court milestones as they are set.
