Storj Files Chapter 11, Eyes Tokenholder Equity Path

Storj Labs filed for Chapter 11 bankruptcy and plans to keep its network running while exploring an equity pathway for STORJ tokenholders.

Storj Files Chapter 11, Eyes Tokenholder Equity Path

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Written by

Ezra Reguerra

staff writer

Reviewed by

Bryan O'Shea

staff editor

Written by

Ezra Reguerra

staff writer

Reviewed by

Bryan O'Shea

staff editor

Storj files for bankruptcy, explores equity path for tokenholders

Latest News

Published

Jul 27, 2026

The decentralized storage provider says its network will continue operating during Chapter 11 as it explores a court-approved ownership mechanism for STORJ holders.

Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection. The company said it plans to keep its network running while restructuring legacy liabilities and exploring an ownership pathway for STORJ tokenholders.

On Sunday, Storj

said

it filed the voluntary case in the US Bankruptcy Court for the Northern District of West Virginia. The company said ordinary operations and customer services would continue during the process, subject to court oversight, while its parent company, Inveniam, would continue to support the business.

The restructuring could become an unusual test of whether utility-token holders can participate in the ownership of a company emerging from bankruptcy.

In an open letter to its community, Storj

said

its liabilities largely predate its current strategy and are too substantial to resolve through business growth alone. It said the network continues to operate normally and its token’s utility is unchanged.

STORJ

showed

no significant immediate price reaction following the announcement, trading around $0.072 at the time of writing, according to CoinGecko.

Storj explores equity pathway for tokenholders

Storj said management intends to propose a mechanism allowing tokenholders to participate in the reorganized company’s equity.

However, Storj has not disclosed how tokenholder eligibility would be determined, whether participation would involve a token snapshot or lockup, or how much equity might be allocated. The company acknowledged that any plan must follow bankruptcy priorities and receive court approval.

Cointelegraph reached out to Storj for comment but did not receive a response before publication.

Storj is among the crypto industry’s longest-running decentralized infrastructure projects. Storj began in 2014 as an open-source peer-to-peer cloud storage project that

sought to let users rent storage

from other network participants rather than rely on centralized providers.

Related:

BitMEX hit with 623 BTC lawsuit on day it announces shutdown

Storj’s bankruptcy filing comes in the same month as at least two other crypto companies sought Chapter 11 protection.

Movement Labs

filed under Subchapter V

on July 15 after months of turmoil linked to its MOVE token, while Bitcoin mining pool Poolin filed on July 22 as it

pursued a court-supervised sale

of two Texas mining sites.

BitMEX also

announced in July that it would shut down after 11 years

, while BitMart said it would

end trading on Aug. 26

before ceasing operations entirely on Jan. 31, 2027. Neither exchange announced a bankruptcy filing, with both instead opting for orderly wind-downs.

Magazine:

CLARITY hopes fade, BitMEX shuts as lawsuit looms: Hodler’s Digest

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