Storj Labs has filed for Chapter 11 bankruptcy protection on July 26, 2026, aiming to reorganize rather than shut down. The company, which raised about $35 million over multiple funding rounds, is addressing legacy debts rather than current business failures.
Despite the bankruptcy filing with the US Bankruptcy Court in West Virginia under case number 5:26-bk-00512, Storj’s core operations remain strong. According to Kaloyan Raev, the company’s director of software engineering, Storj is "right-sized" and stable but burdened by financial obligations from earlier stages, including a $30 million token offering in 2017 and several seed and equity rounds totaling approximately $35 million.
This move lets Storj restructure its outstanding debts under court supervision while continuing its decentralized cloud storage services without interruption. The STORJ token remains active, trading near $0.072 with minimal volatility post-filing, reflecting market confidence in the company’s ongoing business.
The restructuring has backing from Inveniam, a data infrastructure firm that announced plans to acquire Storj in October 2025. This acquisition adds strategic support, increasing the likelihood of a successful reorganization instead of liquidation.
A proposed plan could grant STORJ token holders equity in the reorganized company once the court approves the details, though these remain under negotiation. Unlike typical bankruptcies, Storj’s case highlights how crypto startups can use legal tools to manage past financial burdens while maintaining service continuity.
