Storj Labs filed for Chapter 11 bankruptcy protection on July 26 as the distributed cloud company moves to restructure legacy obligations while preserving its operating business.
The voluntary case was filed in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512. Initial filing estimates placed both assets and liabilities between $1 million and $10 million, with between one and 49 creditors.
Storj attributed the filing to obligations carried over from an earlier phase of the company rather than a shutdown of its current storage and compute operations. The company is also disposing of previous acquisitions and non-core businesses as it refocuses on its original distributed cloud platform.
Storj software engineering director Kaloyan Raev said the restructuring would give the company a “clean foundation” and create a potential ownership structure shared among management, investors, network participants and STORJ holders. Any reorganisation plan and changes to corporate ownership remain subject to bankruptcy-court approval.
Storage Network To Continue Operating
Storj expects its customer services and underlying network to continue operating during the proceedings. The company plans to meet post-filing obligations in the ordinary course, subject to court supervision and applicable bankruptcy rules.
The platform distributes encrypted portions of customer data across independent storage-node operators and provides S3-compatible object storage, compute and file-access services for media, artificial intelligence and other data-intensive workloads.
Inveniam Capital Partners, which agreed to acquire Storj in October 2025, is supporting the restructuring. The acquisition was presented as a way to integrate Storj’s storage and computing infrastructure into Inveniam’s private-market data platform without changing existing customer contracts, pricing or leadership.
The filing follows Movement Labs entering Chapter 11 with up to $10 million in liabilities on July 15. Bitcoin mining pool operator Poolin later filed for bankruptcy while seeking to sell two Texas mining sites through a court-supervised auction.
STORJ Falls As Token Plan Remains Undisclosed
STORJ traded near $0.074 after dropping more than 10% following the filing. The token remains active on the network and is used to compensate storage operators, but it does not represent an equity claim against Storj Labs under the existing structure.
Storj was founded in 2014 and raised about $30 million through its 2017 token sale, adding to roughly $5 million collected through earlier investment and grants. The company became one of the longest-running projects from the initial coin offering cycle.
Storj has not disclosed how STORJ holders could participate in the reorganised company, how eligibility would be determined or how much equity could be allocated. Those terms would need to appear in a restructuring plan and clear the bankruptcy process before taking effect.
