Decentralized cloud storage provider Storj has filed for Chapter 11 bankruptcy protection in the United States, but the company says its storage network will continue operating without interruption as it restructures its finances and charts a new ownership path for STORJ token holders.
Storj announced that the voluntary Chapter 11 filing is aimed at resolving legacy liabilities accumulated during an earlier phase of the business rather than responding to problems with its current operations. The company stressed that customers can continue using its decentralized storage services throughout the court-supervised restructuring process.
Unlike Chapter 7 bankruptcy, which typically involves liquidating a company’s assets, Chapter 11 allows businesses to continue operating while reorganizing their debts under court supervision. Storj said this approach will enable it to preserve its core business while strengthening its long-term financial position.
Founded in 2014, Storj operates a decentralized cloud storage network that distributes encrypted data across thousands of independently operated storage nodes worldwide instead of relying on centralized data centers. The model is designed to improve resilience, privacy and reduce storage costs for businesses and developers.
As part of the restructuring, Storj plans to introduce a new ownership framework that could allow STORJ token holders to receive equity in the reorganized company. The proposal remains subject to approval by the U.S. Bankruptcy Court, and the company has not yet disclosed how the conversion would work or what proportion of equity token holders could receive. Under U.S. bankruptcy law, creditors would be paid before any distribution to token holders.
Storj also said the restructuring has the backing of Inveniam, the enterprise data infrastructure company that agreed to acquire Storj in 2025. According to the company, Inveniam supports the restructuring plan as the best path to resolving historical liabilities while preserving Storj’s technology and customer relationships.
The announcement initially weighed on the STORJ token, reflecting investor concerns over the uncertainty surrounding the bankruptcy process and the proposed ownership restructuring. However, the company emphasized that the filing does not affect the operation of the decentralized network or the utility of the STORJ token within the ecosystem.
Storj said it will continue serving customers, partners and storage node operators as usual throughout the restructuring. The company added that the filing is intended to eliminate legacy obligations that have limited its growth while allowing it to focus on expanding its decentralized cloud storage platform.
The filing is another reminder that even established blockchain companies continue to face financial challenges despite growing enterprise interest in decentralized infrastructure. While Storj insists its underlying business remains healthy, the success of its restructuring will likely determine whether it can emerge with a stronger balance sheet and deliver on its plan to give token holders a stake in the reorganized company.
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