Storj Labs Files for Chapter 11 Bankruptcy Amid Restructuring Efforts

Storj Labs, the company behind the decentralized cloud storage platform Storj, has filed for Chapter 11 bankruptcy protection. This move is aimed at restructuring legacy debt while allowing the business to continue operating.

The filing, which was made on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512, comes after Storj raised approximately $35 million through venture funding, grants, and its 2017 STORJ token sale.

The company plans to propose shared ownership for management, investors, community members, and STORJ holders as part of the reorganization process. Token holders may be eligible to join this proposal, although the exact terms have not been disclosed.