Overview
- Storj Labs voluntarily filed for Chapter 11 in U.S. Bankruptcy Court for the Northern District of West Virginia, a move the company made on Sunday, July 26, 2026 to address what it calls legacy obligations.
- The company says network operations and the STORJ token’s utility will continue during the reorganization and that customer services should not be interrupted.
- Storj has proposed a mechanism to let STORJ token holders receive equity in the reorganized company, but the company has not published any concrete conversion terms and any offer must clear creditors and the bankruptcy court.
- The filing follows Storj’s earlier fundraising of roughly $35 million, including a $30 million 2017 token sale, and comes with immediate market effects as STORJ prices fell sharply and trading volume spiked.
- Near‑term developments to watch are formal court filings that list creditors and proposed financing, any detailed token‑to‑equity mechanics, and exchange decisions that could affect token liquidity and network participants who earn STORJ.