Storj Labs Files for Chapter 11 Bankruptcy, STORJ Token Drops 20%

Decentralized cloud storage provider Storj Labs, Inc. filed for Chapter 11 bankruptcy on July 26, 2026, to restructure legacy debts. Supported by parent company Inveniam Capital Partners, the firm plans to shed non-core operations while keeping its storage network fully operational. Unusually, the restructuring proposes converting STORJ token holdings into equity, though this requires court approval. Following the announcement, the STORJ token fell up to 20% to around $0.06, amid a broader wave of crypto failures.

Storj Labs Chapter 11 filing

• ▪Prior to its bankruptcy filing, Storj Labs, Inc. had raised approximately $35 million through venture funding, grants, and a $30 million token sale in May 2017.
• ▪Storj Labs, Inc. filed for voluntary Chapter 11 bankruptcy protection on July 26, 2026, in the U.S. Bankruptcy Court for the Northern District of West Virginia.
• ▪The bankruptcy filing for Storj Labs, Inc. is registered under case number 5:26-bk-00512.

Legacy debt restructuring strategy

• ▪As part of its restructuring, Storj Labs, Inc. plans to dispose of previous acquisitions and cut off non-essential operations to focus on its core cloud business.
• ▪Storj Labs, Inc. filed for Chapter 11 bankruptcy to resolve legacy obligations and debts tied to earlier acquisitions and non-core operations.

STORJ token price impact

• ▪Following the bankruptcy announcement, the STORJ token price fell approximately 16% to 20% over 24 hours, dropping to around $0.06.
• ▪The STORJ token has declined 79% over the past year and 98% from its March 2021 peak of $3.81.
• ▪Binance recently placed a monitoring tag on the STORJ token, which could reflect potential delisting risks.

Network operations continuity

• ▪The STORJ token continues to function normally to support network payments and compensate node operators who provide storage and bandwidth.
• ▪Storj Labs, Inc. expects no interruption to its decentralized cloud storage services, customer operations, or node operator payments during the bankruptcy process.

Proposed shared ownership structure

• ▪Storj Labs, Inc. plans to propose a shared ownership structure for the reorganized company that includes management, current investors, and STORJ token holders.
• ▪The proposed equity conversion for STORJ token holders requires creditor support and bankruptcy court approval to be enacted.

Inveniam acquisition business refocus

• ▪Inveniam Capital Partners acquired Storj Labs, Inc. in October 2025 and supports the financial restructuring to refocus the company on its core storage business.
• ▪At the time of Inveniam Capital Partners' acquisition of Storj Labs, Inc. on October 22, 2025, the STORJ token traded near $0.1872.