The story

Storj Labs voluntarily filed for Chapter 11 bankruptcy protection on July 26 in the US Bankruptcy Court for the Northern District of West Virginia. The company said it will continue operating in the ordinary course throughout the process and does not anticipate interruptions in service to customers. The filing aims to address what Storj called legacy obligations from an earlier period that it said could not be resolved through business growth alone.

Storj said it intends to propose a mechanism allowing token holders to participate in equity of the reorganized company, though it has not disclosed eligibility requirements, structure, or terms. Any such plan would require court approval and must comply with legal priorities governing different stakeholder groups. The company's 2017 token sale terms state that STORJ does not represent company shares, liquidation rights, revenue claims, or ownership of Storj Labs.

Following the announcement, STORJ fell by over 17 percent to $0.06, according to one outlet, though another reported the token trading around $0.072 with no significant immediate price reaction. Storj was acquired by Inveniam in October 2025, and the parent company continues to support the business during restructuring. The filing comes during a month that saw Movement Labs file for Chapter 11 on July 15 and Poolin file on July 22, while BitMEX and BitMart announced closures.