Storj Files Chapter 11, Floats Equity Path for Token Holders

Storj Labs, the company behind the decentralized cloud storage network Storj, filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of West Virginia, Case No. 5:26-bk-00512, the company said in a blog post. Storj said the filing is meant to address legacy obligations while preserving its ongoing business operations.

The company said it will continue operating in the ordinary course throughout the process and does not anticipate any interruptions in service to customers, subject to court oversight. Its parent company, Inveniam, has continued to support the business and endorses the reorganization, Storj said.

STORJ traded around $0.0608, down about 18.1% over the prior 24 hours, according to CoinGecko. The token carried a market capitalization of roughly $26 million. Bitcoin was little changed over the same window.

Equity for Tokenholders

In a separate open letter to its token community, Storj said 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. The design, including eligibility, mechanics, and terms, will be developed during the process and disclosed formally, the company said.

Storj framed that offer with a caveat. A plan must be approved through the court process, and bankruptcy law sets priorities among stakeholders that it must respect, the company said, adding that it is "promising you a seat at the table and a genuine intention — not an outcome." The letter also stated it is not an offer or solicitation of any security or token and not a promise of any recovery.

Storj said the network continues to operate normally and the token's utility in the network is unchanged by the announcement. It said it would not comment on price.

"This is a decisive, positive step," said Kaloyan Raev, Storj's Director of Software Engineering. "The business underneath is strong and right-sized. What holds it back are legacy obligations from an earlier chapter."

The filing adds to a run of crypto Chapter 11 cases and wind-downs in July. Movement Labs filed under Subchapter V on July 15 and Bitcoin mining pool Poolin filed on July 22, while derivatives exchange BitMEX and BitMart both announced orderly wind-downs without bankruptcy filings. Storj said the terms of its proposed token holder equity mechanism will be disclosed as the case proceeds.