Storj Labs filed for Chapter 11 bankruptcy protection on Sunday, according to a company announcement. The filing was made in the US Bankruptcy Court for the Northern District of West Virginia, with case number 5:26-bk-00512.
Storj plans to continue operating its network during the bankruptcy proceedings. The company intends to propose a mechanism for STORJ token holders to receive equity in the reorganized company, but any such plan must be approved by the court and follow creditor priority. Storj has not disclosed how token holder eligibility or the amount of equity will be determined.
What holds it back are legacy obligations from an earlier chapter.
Storj's liabilities stem from an earlier phase of the business and cannot be resolved through growth, according to a letter to token holders signed by Kaloyan Raev, Storj's director of software engineering. The company noted that two-thirds of the STORJ supply is held outside of free trading.
Inveniam Capital Partners announced its acquisition of Storj on Oct. 22, 2025. Inveniam Chairman and CEO Patrick O'Meara said at the time, "We're particularly excited to integrate the STORJ token into our ecosystem, driving greater utility." Inveniam continues to support Storj during the bankruptcy, according to the company.
STORJ traded near $0.1872 on the acquisition announcement day and has fallen about 60% since. Shortly after the bankruptcy announcement, STORJ was trading around $0.0745 with volume of $5.6 million and a market cap of $10.7 million. At the time of writing, CoinGecko reported STORJ at approximately $0.072.
Storj was founded in 2014 as an open-source peer-to-peer cloud storage project. Its network now operates across tens of thousands of storage locations in more than 100 countries.
Several other crypto companies filed for Chapter 11 in July 2025, including MVMT Labs (also known as Movement Labs) on July 15 and Poolin on July 22, according to court documents. The MOVE token hit a record low of $0.00964 ten days after the MVMT Labs filing. BitMEX announced it would shut down in July, and BitMart said it would end trading on Aug. 26 and cease operations on Jan. 31, 2027.