Storj Labs, the company behind the decentralized cloud storage network Storj, filed for Chapter 11 bankruptcy protection on July 26, 2026, in the US Bankruptcy Court for the Northern District of West Virginia. The petition is listed under case number 5:26-bk-00512.

The company said the voluntary filing is intended to address legacy debt while allowing its current operations to continue. Chapter 11 generally allows a debtor to keep operating while it seeks court approval for a restructuring plan, making the case important for Storj customers, storage node operators, and token holders whose roles depend on continued network availability. Storj Labs said it plans to maintain network services and customer support throughout the reorganization process.

Storj Labs Files for Chapter 11 Bankruptcy After Raising Approximately $35 Million

Storj Labs, the company behind decentralized cloud storage network Storj, has voluntarily filed for Chapter 11 bankruptcy protection to address legacy debt while continuing operations. The… pic.twitter.com/UkF8qiMkB6

— Wu Blockchain (@WuBlockchain) July 27, 2026

According to company statements, Storj Labs’ financial difficulties are tied to legacy liabilities from earlier business operations. Kaloyan Raev, director of software engineering at Storj, described the company’s present business as operationally sound and appropriately sized, while still burdened by historical financial obligations.

Before the bankruptcy filing, Storj Labs had raised approximately $35 million in capital. That total includes a $30 million STORJ token offering completed in May 2017, a $3 million seed round disclosed in February 2017, and about $5 million in additional equity financing across six separate funding rounds.

The Chapter 11 petition was filed roughly nine months after Inveniam, a data infrastructure firm, disclosed in October 2025 that it planned to acquire Storj Labs. Inveniam has said it remains committed to supporting Storj Labs during the Chapter 11 restructuring process.

Storj Says Network Operations Will Continue

Storj Labs said customers should not expect service interruptions during the Chapter 11 case. The Storj network operates through independent storage node operators, who are compensated in STORJ tokens for contributing storage capacity and bandwidth. That operating model differs from conventional cloud storage providers that rely on company-owned or leased data center infrastructure, and it makes the status of node payments and service continuity central to the restructuring.

The company also said the STORJ token will continue to serve its existing function within the network ecosystem. At the time of the bankruptcy filing, CoinGecko data showed STORJ trading near $0.072, and the announcement produced minimal immediate price volatility.

As part of its restructuring plan, Storj Labs is working to streamline its business. The company intends to divest prior acquisitions and non-core business units as it moves through the bankruptcy process.

Token Holder Equity Framework Under Development

Storj Labs management has said it intends to develop a framework that would allow STORJ token holders to obtain equity stakes in the post-reorganization entity. The proposed ownership structure could include existing management, current investors, community stakeholders, and potentially new capital partners.

Specific terms have not yet been disclosed. Storj Labs has not announced eligibility rules, any token snapshot requirements, lockup provisions, or the percentage of equity that may be allocated under the proposed structure. Any reorganization plan must be approved by creditors and receive final authorization from the bankruptcy court.

The approach differs from some other cryptocurrency bankruptcy cases filed in July 2026. Poolin, a Bitcoin mining operation that also entered Chapter 11 in July, is pursuing a court-supervised liquidation of its Texas-based mining facilities. Movement Labs filed under Subchapter V in July and reported potential liabilities of as much as $10 million.

Storj Labs has not yet released a full reorganization plan, a complete creditor list, or finalized ownership terms. Additional court filings expected in the coming weeks are expected to provide more detail on the company’s total debt obligations, the treatment of creditors, and the proposed framework for token holder participation.