Storj Labs files for bankruptcy

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Storj Labs files for bankruptcy

Storj seeks to resolve legacy debt

In its official statement, Storj said customer services, the network and its core business are expected to continue operating as usual. However, the company’s activities will remain subject to bankruptcy law and court approval.

According to Storj Director of Software Engineering Kaloyan Raev, the business remains stable and appropriately sized for its current operations. At the same time, its development continues to be constrained by obligations accumulated during an earlier stage of the company’s history.

Storj has not disclosed the full value of its assets and liabilities or published a complete list of creditors. These details, along with a future reorganization plan, will be reviewed by the court.

As part of the restructuring, Storj intends to focus on its core cloud business. The company is disposing of previously acquired assets and non-core operations.

Inveniam, which supports the restructuring, believes Storj should refocus on distributed storage, computing services and file-access tools.

In October 2025, Inveniam announced an agreement to acquire Storj. The companies said Storj would remain a separate legal entity and continue operating as an Inveniam subsidiary. Relationships with customers, suppliers and the community were also expected to remain unchanged.

Storj services are expected to continue

Storj said it does not expect any interruptions to customer services during the bankruptcy process. However, this is the company’s expectation rather than a guarantee.

Under Chapter 11, Storj must comply with bankruptcy rules, while some business decisions may require court approval.

The Storj network uses unused storage capacity provided by independent operators. Customers can access distributed cloud storage through tools compatible with widely used business systems.

The STORJ token is used for payments within the ecosystem, including rewards for node operators that provide storage space and bandwidth.

After the filing, the company’s website continued to promote cloud storage, file-access and computing products. Storj has not announced any changes to the token’s role in the network.

However, the bankruptcy proceedings concern Storj Labs as a legal entity. Court decisions could affect the company’s ownership structure, finances and future organization.

Even before the filing, Storj had revised some terms of its cloud storage business. On July 1, 2026, the company introduced new storage and egress pricing while keeping separate terms for some customers on older plans.

STORJ holders could receive a stake in the company

Storj said management, community members, STORJ token holders, existing investors and potential new investors could become co-owners of the reorganized company.

For now, this remains only a preliminary proposal. The company has not specified how many token holders could qualify or how ownership would be allocated.

Such a structure would need to be included in a formal reorganization plan, receive the required creditor support and secure court approval.

Storj has not yet disclosed possible token conversion terms, eligibility rules, the company’s valuation or the timetable for the plan. Therefore, holding STORJ does not currently provide a confirmed right to receive shares in the reorganized business.

The proposed model differs from procedures in which bankrupt crypto companies sell assets under court supervision.

For example, mining pool Poolin filed for Chapter 11 protection while planning to sell its Bitcoin mining operations in Texas. Before filing, the company reported about $173.1 million in liabilities.

Movement Labs also filed for bankruptcy in July, with liabilities potentially reaching $10 million. Meanwhile, an independent developer said work on the Movement blockchain would continue regardless of the financial condition of the original company.

Storj raised about $35 million

In May 2017, Storj raised $30 million through a STORJ token sale. The company reached its target in seven days, although the sale had originally been scheduled to remain open until June 19.

Participants received STORJ tokens that could be used within the distributed storage ecosystem.

The company also raised traditional venture funding. In February 2017, Storj announced a $3 million seed round to support the development of its cloud platform. Investors included entities linked to Qualcomm Ventures and Techstars.

According to CB Insights, Storj raised about $5.05 million in equity funding across six investment rounds. Combined with the token sale, the total amount of publicly disclosed funding reached roughly $35 million.

Inveniam’s October 2025 acquisition announcement said Storj would retain its products, leadership and community relationships. The STORJ token was also expected to remain part of the company’s decentralized infrastructure.

The bankruptcy filing came roughly nine months after the Inveniam deal was announced.

Storj has not yet presented a complete reorganization plan, a detailed list of creditors or final ownership terms. More information about its debts, financing, asset sales and the possible role of token holders is expected in future court filings.

Previously, former mining giant Poolin also filed for bankruptcy.

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