Decentralized cloud storage provider Storj Labs has filed for Chapter 11 bankruptcy protection in the United States as it seeks to restructure legacy debt while continuing normal business operations. The company says its cloud storage services, decentralized network and STORJ token ecosystem will remain operational throughout the court-supervised restructuring process.
The filing comes after Storj raised approximately $35 million through venture funding, grants and its 2017 token sale.
Bankruptcy Aims to Restructure, Not Shut Down
Storj emphasized that the Chapter 11 filing is intended to reorganize the company’s finances rather than liquidate its business.
According to the company, customer services, decentralized storage infrastructure and network operations are expected to continue while it works to resolve financial obligations accumulated during earlier stages of the business.
Management stated that the restructuring is designed to eliminate legacy liabilities and allow the company to focus on its core decentralized cloud storage platform.
Core Business Remains Unchanged
Storj confirmed that its decentralized storage network will continue operating as normal.
The platform connects independent storage node operators with businesses seeking secure, distributed cloud storage, while the STORJ token continues to facilitate payments across the network, including rewards for node operators providing storage capacity and bandwidth.
The company also noted that its cloud storage, file access and compute services remain available without announced changes.
Ownership Proposal Could Include Token Holders
One of the most notable aspects of the restructuring is Storj’s proposal to create a shared ownership model involving management, existing investors, community members and STORJ token holders.
However, the company clarified that the proposal remains in its early stages and has not yet been approved by the bankruptcy court.
Details regarding eligibility, ownership allocation, token conversion terms and valuation have not yet been disclosed and will form part of a future Chapter 11 reorganization plan.
STORJ Token Falls After Filing
Following news of the bankruptcy filing, the STORJ token declined as investors reacted to the announcement.
Despite the market reaction, Storj stressed that the filing affects Storj Labs as a corporate entity, not the underlying decentralized protocol or the token’s existing role within the network.
The company said token utility and network operations remain unchanged during the restructuring process.
Company Refocuses on Decentralized Cloud Infrastructure
As part of its restructuring strategy, Storj is streamlining operations by divesting non-core assets and concentrating on its primary cloud infrastructure business.
The company continues to operate as a subsidiary of Inveniam, which announced its acquisition of Storj in October 2025 while pledging to preserve existing customer relationships, leadership and community support.
Management believes the restructuring will allow the business to strengthen its long-term focus on decentralized storage, distributed computing and enterprise file-access solutions.
Storj Raised Around $35 Million Before Filing
Before entering Chapter 11, Storj secured approximately $35 million through a combination of traditional venture financing and token fundraising.
Its 2017 STORJ token sale raised around $30 million, while additional seed funding of approximately $5 million supported development of its decentralized cloud storage platform.
The bankruptcy filing arrives nearly nine months after Inveniam announced its acquisition of the company.
What Comes Next
Storj has not yet submitted its full reorganization plan, detailed creditor schedule or final ownership proposal.
Future court filings are expected to clarify:
- The company’s financial obligations
- Asset restructuring plans
- Potential ownership rights for STORJ holders
- Long-term capital structure
- Financing arrangements during Chapter 11
For now, Storj says its priority is maintaining uninterrupted service while restructuring its balance sheet and positioning the company for sustainable long-term growth in the decentralized cloud storage market.
