Storj Labs filed for Chapter 11 bankruptcy protection on July 26 as the distributed cloud company seeks to restructure legacy obligations while continuing to operate its core business.

The voluntary petition was filed in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512. Initial estimates in the filing listed both assets and liabilities in the range of $1 million to $10 million, with between one and 49 creditors.

Storj said the bankruptcy process relates to obligations from an earlier phase of the company and is not intended as a shutdown of its current storage and compute operations. Chapter 11 generally allows a company to keep operating while it seeks court approval for a plan to address debts, sell assets or reorganize ownership. The company is also moving to dispose of prior acquisitions and non-core businesses as it refocuses on its original distributed cloud platform.

Storj software engineering director Kaloyan Raev said the restructuring would provide the company with a “clean foundation” and could create a potential ownership structure shared by management, investors, network participants and STORJ holders. Any reorganization plan, including changes to corporate ownership, remains subject to approval by the bankruptcy court.

Storj Says Network and Customer Services Will Continue

Storj expects its customer services and underlying network to continue operating during the Chapter 11 proceedings. The company said it plans to meet post-filing obligations in the ordinary course of business, subject to court oversight and applicable bankruptcy rules.

The Storj platform distributes encrypted pieces of customer data across independent storage-node operators. It provides S3-compatible object storage, compute and file-access services for media, artificial intelligence and other data-intensive workloads. For customers and node operators, the key operational issue during the case is whether storage, retrieval and compensation systems continue functioning without changes to service terms.

Inveniam Capital Partners, which agreed to acquire Storj in October 2025, is supporting the restructuring. That 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 came after Movement Labs entered Chapter 11 on July 15 with up to $10 million in liabilities. Bitcoin mining pool operator Poolin later filed for bankruptcy while seeking to sell two Texas mining sites through a court-supervised auction.

STORJ Drops as Token Holder Plan Remains Undisclosed

STORJ traded near $0.074 after falling more than 10% following the bankruptcy filing. The token remains active on the network and is used to compensate storage operators, but under the existing structure it does not represent an equity claim against Storj Labs.

Storj was founded in 2014 and raised about $30 million through its 2017 token sale, in addition to roughly $5 million collected through earlier investment and grants. The company became one of the longer-running projects from the initial coin offering era, when many blockchain startups sold tokens to fund network development while corporate ownership remained separate from token ownership.

Storj has not disclosed how STORJ holders could participate in the reorganized company, how eligibility would be determined, or how much equity could be allocated. Those terms would need to be included in a restructuring plan and approved through the bankruptcy process before taking effect.