Storj filed for bankruptcy protection on Sunday. The company says its network is still active and STORJ tokens are still valid. The owner made a similar promise nine months ago.
Storj now wants to give token owners a share of the rebuilt company. But the judge has to accept that. And creditors are paid first.
Why Storj Wrote Chapter 11
Storj Labs filed in federal bankruptcy court in West Virginia. The case number is 5:26-bk-00512.
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Chapter 11 is not closure. It allows the company to continue trading while the court helps settle its debts.
Storj says the loans are old. He came from the early stage of business. The company cannot grow in them.
The underlying business is strong and large.
That was Kaloyan Raev, Storj’s head of software. He also signed the letter to the token holders, not Chief Executive Colby Winegar.
What It Means for STORJ Investors
Nothing changes the brand today, Storj says. Data still passes through thousands of storage locations in more than 100 countries.
The company is planning to offer its owners in the new Storj. Equity means ownership. The rules for those who are eligible have not yet been written.
Those rules will be important. About 143.8 million STORJs trade freely out of a total of 425 million. Two-thirds of the donations go elsewhere.
Bankruptcy also has a payment plan. Creditors come before owners. It’s Storj letter to those with symptoms he admits that he can promise goals, not results.
Warning Sign From October
Founding Capital Partners he announced was buying Storj on Oct. 22, 2025. It promised no changes to contracts, pricing, or leadership.
“We’re very excited to integrate the STORJ brand into our ecosystem, driving demand and integration across our platforms.”
That was Patrick O’Meara, Inveniam’s chairman and chief executive. STORJ traded close to $0.1872 that day. It has fallen nearly 60% since then.
A close warning came this month. MVMT Labs filed for Chapter 11 in Delaware on July 15. Its Movement Symbol (MOVE) reached $0.00964 ten days later.
STORJ has been stable so far. They can be sold for 0.0745 US Dollarrising by 1.5% per day. The volume is $5.6 million and the market value is $10.7 million.
The main part is also soft. Storage and infrastructure tokens remain even as network usage grows.
Storj says they will share court dates when they arrive. But a good seal of equity will decide what the owners will get.
A note Storj Chapter 11 Raises a Big Question for STORJ Token Holders appeared for the first time BeInCrypto.
