Storj Labs filed for Chapter 11 bankruptcy on July 26, aiming to restructure its legacy debts after securing roughly $35 million through venture capital, grants, and a token sale back in 2017. The move is not a shutdown but a plan to reorganize financial obligations while keeping services running.
The company emphasized that its decentralized cloud storage network and operations will continue throughout the bankruptcy process, pending court authorization. Storj’s leadership intends to propose shared ownership involving management, investors, the community, and STORJ token holders as part of its restructuring strategy.
Kaloyan Raev, the director of software engineering at Storj, described the company as "strong and right-sized" but burdened by financial liabilities from an earlier era. While the firm is narrowing its focus to core cloud services, shedding acquisitions and non-critical activities, its financial disclosures during bankruptcy remain limited.
Inveniam, which plans to acquire Storj in 2025, supports the restructuring efforts. Storj will operate as a subsidiary under Inveniam while maintaining existing relationships with customers and suppliers. The company stressed it expects no disruption to customer services, though all business decisions will require bankruptcy court approval.
The STORJ token continues to function as the payment method within the network, compensating storage node operators and enabling business transactions across the distributed cloud storage platform. This filing echoes challenges faced in managing legacy debts despite growing blockchain infrastructure utility.
