Storj Files for Chapter 11 Bankruptcy

Storj Labs has officially filed for Chapter 11 bankruptcy in a West Virginia federal court. The company stated that it intends to use this process to resolve legacy debts that have hindered its growth. Despite the legal filing, the company maintains that its data storage network remains fully operational and that the STORJ token continues to function as usual.

The core of the company’s proposal involves offering token holders equity in the reorganized business. However, these plans are not guaranteed. The bankruptcy process requires court approval, and the law dictates that creditors must be paid before any equity can be distributed to others. Because the specific rules for who might qualify for this ownership stake are not yet written, holders currently have little certainty regarding their future position.

This move comes after a period of significant volatility for the project. Since a potential acquisition was announced in late 2025, the price of the STORJ token has dropped roughly 60 percent. While the company points to its underlying network as a functional asset, the market remains cautious. Investors are now watching for court updates to see if the proposed equity structure will offer any tangible value to token holders or if the restructuring will further impact market sentiment.