Storj filed for Chapter 11 bankruptcy protection on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia, while also outlining a new idea that could give STORJ token holders a route to equity in the reorganized company.
The decentralized cloud storage project said the filing was voluntary. It added that the network will continue to operate normally during the restructuring process, customer services will remain available, and the case will proceed under court supervision. Parent company Inveniam will continue to support operations, according to the company.
Plan would create a possible equity route for token holders
In a public letter to the community, Storj said its liabilities mainly stem from its early-stage period and cannot be fully absorbed through business growth alone. Management plans to propose a mechanism under which STORJ holders could obtain equity in the company after the restructuring.
Several core details have not been disclosed. These include:
- how holder eligibility would be determined, including whether a token snapshot or lockup would be required;
- the ratio for any equity allocation;
- how any plan would fit within bankruptcy priority rules and secure court approval.
If implemented, the move would amount to a rare attempt in decentralized storage. The question of whether utility token holders can participate in company ownership through a bankruptcy restructuring process remains unusual in the crypto industry.
Storj says network operations will continue
Founded in 2014, Storj described itself as a decentralized infrastructure project and said its network will keep running throughout the restructuring period. In its official announcement, the company said the court-supervised process would not interrupt day-to-day service operations.
July also saw other crypto bankruptcy cases
Storj was not alone in July 2026. The report said at least two other crypto companies also filed for Chapter 11 during the month:
- Movement Labs filed for Subchapter V bankruptcy protection on July 15 after months of volatility in its MOVE token.
- Bitcoin mining pool Poolin filed on July 22 and moved to sell two Texas mining sites under court supervision.
Separately, derivatives exchange BitMEX said in July that it was shutting down after 11 years of operation, though it chose an orderly liquidation instead of a bankruptcy proceeding.
STORJ price showed little reaction
STORJ did not see a significant price move after the announcement. CoinGecko data cited in the report showed the token trading at about $0.072.