- Storj filed for Chapter 11 to restructure legacy debt.
- The company will continue operating its cloud storage network.
- Storj plans shared ownership for investors, management, communities, and STORJ holders.
Blockchain-powered decentralized cloud storage platform Storj Labs is seeking Chapter 11 bankruptcy protection. Even as it conducts business as usual on its cloud storage network. The firm has filed its petition to the U.S. Bankruptcy Court for the Northern District of West Virginia on July 26. The filing aims to enable it to reorganize and deal with legacy debts, rather than liquidate its assets. According to Storj, services offered to customers, decentralized storage, and cloud products will continue during the restructuring process.
“Storj Labs’ business is operational and healthy but still carries financial responsibilities resulting from previous growth stages,” said Director of Software Engineering Kaloyan Raev. The company is looking to refocus on its primary products of distributed cloud storage, computing, and file access services.
Company Focused on Core Cloud Infrastructure
Storj has a decentralized storage marketplace that allows individual node operators to provide unused storage capacities from distributed infrastructures. Consumers can use cloud storage services using compatible business software, while STORJ tokens are used for payments within the parts of the network. Node operators earn token payments for providing storage capacities and bandwidth.
The company mentioned that the Chapter 11 bankruptcy is related to Storj Labs as an incorporated entity and not to its blockchain network. Storj has not disclosed any changes regarding how the STORJ tokens are used, how the network is run, or how customer products work. The company had also rolled out new pricing models for storage and data egress before filing, which took effect on July 1, 2026.
Ownership Plan Will Incorporate STORJ Token Holders
Storj will be presenting an ownership plan that might involve management, current investors, members of the community, future investors, and eligible STORJ token holders. Nonetheless, the ownership proposal still needs the creditors’ consent and final approval in the Chapter 11 procedure. Storj has not provided the criteria for eligibility, ownership structure, valuation approach, and timing for the proposed changes.
Before filing for Chapter 11, Storj had received around $35 million in funding, including $30 million from the sale of STORJ tokens in 2017 and $3 million in seed money from investors affiliated with Qualcomm Ventures and Techstars. After Inveniam acquires the company in October 2025, Storj continues to function independently.
Highlighted Crypto News:
Coinbase CEO Brian Armstrong Says AI Will Drive Crypto Adoption Through Autonomous Payments
Be the first to comment