Storj Labs Seeks Chapter 11 Protection to Restructure Legacy Debts

Storj Labs has filed for Chapter 11 bankruptcy protection in an effort to restructure its legacy obligations and preserve its operating business. The voluntary case was filed on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia under case number 5:26-bk-00512.

The company attributed the filing to unpaid debts from an earlier phase, rather than a shutdown of its current storage and compute operations. Storj is disposing of previous acquisitions and non-core businesses as it refocuses on its original distributed cloud platform.

According to Kaloyan Raev, Storj's software engineering director, the restructuring will give the company a 'clean foundation' and create a potential ownership structure shared among management, investors, network participants, and STORJ holders.