Storj files for bankruptcy, explores equity path for tokenholders

[Updated July 29, 2026, 22:31 UTC: Added comments from a Storj spokesperson.]

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. 

A Storj spokesperson told Cointelegraph that the company is currently gathering only indications of interest from tokenholders and that the ownership mechanism would form part of a management-led restructuring plan.

The structure, eligibility requirements and size of any equity allocation remain under development and would be disclosed in formal court documents.

The spokesperson said Storj had expanded away from its core decentralized data business through acquisitions in recent years and that management now plans to return the company to its original focus.

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.

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