Storj Labs Files Chapter 11 Bankruptcy, Plans to Offer Token Holders Equity in Restructured Company

Decentralized cloud storage provider Storj Labs filed for Chapter 11 bankruptcy on July 26, 2026, to restructure legacy liabilities. Backed by parent company Inveniam, Storj Labs plans to maintain normal network operations. Unusually, management intends to propose a framework to grant STORJ token holders equity in the reorganized company. The filing comes amid a wave of crypto bankruptcies in July 2026, including filings by Movement Labs and Poolin.

Storj Labs Chapter 11 filing

• ▪Storj Labs voluntarily filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of West Virginia on July 26, 2026
• ▪Storj Labs intends to maintain uninterrupted decentralized cloud storage network operations and customer services throughout the court-supervised restructuring process
• ▪The Storj Labs Chapter 11 bankruptcy petition was filed under case number 5:26-bk-00512

Legacy liability restructuring rationale

• ▪Prior to filing, Storj Labs raised approximately $35 million, comprising approximately $30 million from a 2017 STORJ token sale and approximately $5 million from earlier venture funding and grants
• ▪Storj Labs filed for bankruptcy to restructure legacy liabilities that predate its current strategy and are too substantial to resolve through business growth alone
• ▪As part of its restructuring strategy, Storj Labs is streamlining operations by disposing of previous acquisitions and non-essential business units

Token holder equity proposal

• ▪The proposed equity conversion mechanism for STORJ token holders remains subject to bankruptcy priority rules and requires court approval.
• ▪Storj Labs management plans to propose a framework allowing STORJ token holders to participate in the reorganized company's equity.
• ▪Storj Labs has not disclosed specific eligibility criteria, token snapshot requirements, lockup provisions, or the percentage of equity allocated for token holders

Utility token bankruptcy treatment

• ▪The STORJ token continues to function normally within the network ecosystem, trading near $0.0745 immediately following the bankruptcy announcement.
• ▪Binance placed the STORJ token under a monitoring tag in May 2026, signaling potential delisting risks

Crypto industry bankruptcy wave

• ▪Bitcoin mining pool Poolin filed for Chapter 11 bankruptcy on July 22, 2026, to pursue a court-supervised sale of two Texas mining sites
• ▪Movement Labs filed for Chapter 11 bankruptcy under Subchapter V on July 15, 2026, with up to $10 million in liabilities, following turmoil linked to its MOVE token