Storj Files Chapter 11 Bankruptcy, Keeps Cloud Storage Services and STORJ Network Running

TheNewsCryptoPublished on 2026-07-27Last updated on 2026-07-27

Abstract

Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection in the U.S., as announced on July 26. The company emphasizes that this legal step is for reorganization, not liquidation, and will not disrupt its core operations. Storj's decentralized storage network, its cloud services for customers, and the functionality of its STORJ token will all continue normally during the process. The filing is attributed to legacy debts from earlier growth phases, while the company describes its current business as "operational and healthy." Storj plans to refocus on its primary cloud infrastructure products. It also intends to propose a new ownership plan that may include eligible STORJ token holders, alongside management and investors, pending creditor and court approval. The company, which previously raised significant funding including a 2017 token sale, continues to operate independently following its 2025 acquisition by Inveniam.

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.

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