Overview
- Storj Labs voluntarily filed for Chapter 11 on Sunday, July 26, 2026, in the U.S. Bankruptcy Court for the Northern District of West Virginia under Case No. 5:26-bk-00512 to address legacy liabilities that the company says are holding it back.
- The company says the Storj decentralized storage network will keep running in the ordinary course and that it does not expect service interruptions or changes to current network economics during the reorganization.
- Storj has proposed a plan that could allocate equity to STORJ token holders, but the terms are not set, the proposal requires bankruptcy-court approval, and token holders are legally subordinate to creditors which creates material uncertainty for token value.
- Inveniam Capital Partners, which acquired Storj in October 2025, endorses the restructuring and Storj says it will sell non-core acquisitions and operations to refocus on its core storage business.
- Key risks for users and holders include potential exchange volatility or delisting after a prior Binance monitoring flag, limited freely tradable supply of about 143.8 million of 425 million tokens, and the need to watch court filings, exchange actions, and network activity for signs of broader impact.