Storj Labs seeks Chapter 11 protection while keeping cloud storage network running

Restructuring after past fundraising

According to the company, Storj Labs previously raised about $35 million through a mix of venture financing, grants and its 2017 STORJ token sale. It is now using Chapter 11 to restructure those obligations rather than wind down the business.

Storj said the case should be understood as a reorganization, not a closure. It stated that its main focus during the process will remain its cloud storage platform, while it works to dispose of earlier acquisitions and other operations it does not consider essential to the core business.

Operations to continue under court oversight

The company said it expects customer-facing services and the decentralized network to keep operating throughout the bankruptcy process. It also said its principal business activities would continue, although actions taken during Chapter 11 remain subject to bankruptcy rules and court approval.

That qualification leaves some decisions dependent on the court, even as Storj presents the filing as a way to preserve continuity. The company said it does not expect service interruptions during the restructuring.

Planned ownership proposal includes token holders

As part of the process, Storj said it plans to propose a shared ownership structure that would include management, investors, community members and STORJ token holders. The company did not disclose who would qualify, how any participation would be determined, or what allocation framework might be used.

Storj added that the STORJ token will remain part of the decentralized infrastructure during the restructuring. It also indicated that token holders could potentially take part in a future ownership arrangement, but no formal terms have been announced.

Inveniam backs the process

The company said Inveniam supports the restructuring. Under the arrangement described by Storj, the company would remain a separate legal entity while continuing to operate as an Inveniam subsidiary.

That structure suggests Storj is seeking to preserve the operating business and its existing role within Inveniam while it works through bankruptcy proceedings and refocuses on its primary storage offering.

The filing places Storj among crypto-linked infrastructure companies trying to use court restructuring to manage older liabilities without immediately disrupting live services. For now, the company is framing Chapter 11 as a mechanism to stabilize the business, narrow its operations and potentially broaden future ownership, but key details on implementation remain undisclosed.