Storj Labs has filed for Chapter 11 bankruptcy protection after raising about $35 million through venture funding, grants, and the 2017 STORJ token sale.
summary
- Storj filed Chapter 11 to restructure legacy debt while maintaining decentralized cloud storage services.
- The company plans to propose joint ownership of management, investors, community members and owners of STORJ.
- STORJ declined after the application was submitted, while utility and token network operations remained unchanged, Storj said.
The company filed the case on July 26 in the US Bankruptcy Court for the Northern District of West Virginia under Case No. 5:26-bk-00512.
According to the official restructuring of Storj advertisementThe registration aims to address legacy financial obligations while allowing the decentralized cloud storage company to continue operating. Its customer services, network and core businesses will continue during court proceedings, subject to bankruptcy rules and court approval, Sturge said.
Storj seeks to address old debts
Storg described the Chapter 11 case as a restructuring rather than a closing. The company said it plans to continue normal operations while working through debt associated with a previous phase of the business. However, the announcement did not provide a complete list of assets, liabilities or creditors.
Kaloyan Rife, director of software engineering at Storj, said the company was “strong and right-sized” but remained lagging due to “legacy commitments from a previous chapter.” The statement reflects the company’s position, but the bankruptcy court will continue to review its finances, creditors’ claims and any proposed reorganization plan.
Storj also said it has narrowed its focus to its core cloud business. It is divesting from previous acquisitions and non-core operations as part of that process. Inveniam supports the restructuring and said the company should return its attention to distributed storage, compute and file access services.
Inveniam announced an agreement for acquires Storj in October 2025. Storj will remain a separate legal entity and operate as a subsidiary of Inveniam, the companies said. They also said existing relationships with customers, suppliers and the community will remain in place.
Services are expected to continue through Chapter 11
Storj said it “does not anticipate any interruptions” to customer services during the bankruptcy process. This wording expresses an expectation, not a guarantee. The company must continue to meet its obligations under the bankruptcy code, and some business decisions may require court approval.
The Storj network uses independent storage providers to make unused storage available. Customers can access distributed cloud storage through tools designed to work with common business systems. The STORJ token supports payments across parts of the network, including compensation to node operators that provide storage and bandwidth.
Company Official website Continue to advertise cloud storage, file access, and computing products after you sign up. Storj has not announced any changes to the role of the token network. However, bankruptcy concerns Storj Labs as a company, and the court process may shape its ownership, finances and business structure.
Prior to filing, Storj also modified parts of its cloud storage business. The company announced new storage and checkout pricing that takes effect on July 1, 2026, while maintaining separate terms for some customers using legacy plans.
Token holders can join the ownership proposal
Management, community members, STORJ holders, existing investors and potential new investors can share ownership of the reorganized company, Storj said. The announcement described this as a plan, not a completed arrangement. He did not say how many token holders could qualify or how ownership would be allocated.
Any ownership proposal must appear in a formal Chapter 11 plan and obtain the required creditor support and court approval. Storj did not disclose transfer conditions, eligibility rules, evaluation details or timeline. Therefore, owning STORJ does not currently confer an affirmative right to shares in the reorganized business.
The proposed structure differs from the court-supervised asset sale approach used by some other cryptocurrency companies. As crypto.news reported, Bolin entered class 11 While pursuing the sale of its Bitcoin mining assets in Texas. The mining company reported liabilities of $173.1 million before the filing.
Similarly, Motion labs introduced for class 11 in July with commitments that could reach $10 million. Meanwhile, a separate developer said that work on the Motion blockchain will continue despite the original company’s bankruptcy case.
Storj had raised about $35 million before filing
Storj completed a STORJ token sale worth $30 million in May 2017. The sale reached its goal in seven days, although the company had initially set to remain open until June 19. Participants received STORJ tokens that they can use within the storage ecosystem.
The company also raised traditional financing before and after the token sale. Storj announced a $3 million seed round in February 2017 to support the development of its distributed cloud storage platform. The round included investors associated with Qualcomm Ventures and Techstars.
CB Insights funding data Storj puts total equity funding at approximately $5.05 million across six rounds. Combined with the token sale, the publicly announced amount amounts to approximately $35 million.
Inveniam’s October 2025 acquisition announcement said Storj would retain its existing services, leadership and community relationships. It also said that the STORJ token will remain part of the company’s decentralized infrastructure.
The bankruptcy filing came about nine months after the acquisition was announced. Storj has not yet released a full reorganization plan, detailed schedule of creditors or final ownership terms. Future court filings should provide more information about its debts, available financing, asset sales, and the proposed role of token holders.
