The Storj bankruptcy filing aims to clear legacy liabilities while keeping the decentralized cloud storage network running normally.
Storj Labs, the company behind the Storj decentralized cloud storage network, has filed for Chapter 11 bankruptcy protection as it tries to clear older liabilities without disrupting the business.
The company said in a Sunday blog post that it had filed in the U.S. Bankruptcy Court for the Northern District of West Virginia, with its initial petition estimating both assets and liabilities at between $1 million and $10 million and listing fewer than 50 creditors.
Storj Labs noted that its operations will continue as usual during the process. Inveniam Capital Partners, a private market data company that acquired Storj in October 2025, is expected to keep supporting the company during the restructuring process.
Kaloyan Raev, Storj’s director of software engineering, reassured that the business underneath is “strong and right-sized.” Raev added:
“What holds it back are legacy obligations from an earlier chapter.”
The company hasn’t specified yet who holds those obligations or how much each creditor is owed. Storj said only that the liabilities came from an earlier stage of the business and had become too large to resolve through ordinary growth.
Following the announcement, the STORJ token plunged as much as 16% to $0.06, per CoinGecko.
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Expansion Gives Way to Retrenchment
Founded in 2014, Storj runs a decentralized storage network built on independently operated storage locations around the globe, rather than relying on its own centralized data centers.
The company later diversified beyond the storage segment through acquisitions in the year 2024 as it purchased Valdi, which is a supplier of on-demand GPUs, and PetaGene, a provider of cunoFS file-access product.
Storj now says it is selling earlier acquisitions and other non-core operations, though it hasn’t identified which assets may be disposed of.
The restructuring process can affect ownership as well, with Storj hoping for management, investors, network users, and STORJ token holders to jointly own the restructured company.
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