Storj Labs filed for Chapter 11 bankruptcy protection on Sunday and plans to offer STORJ token holders equity in the rebuilt company. A judge must approve that, and creditors get paid before owners. The token trades near $0.0745, about 60% below where it stood when Inveniam Capital Partners announced its acquisition.
Storj Labs filed for bankruptcy protection on Sunday and now wants to hand token holders a slice of the rebuilt company. But a judge must approve that, and creditors get paid first.
Legacy debts, not a shutdown
The filing landed in a federal bankruptcy court in West Virginia under case number 5:26-bk-00512. Chapter 11 is not a shutdown; it lets a company keep trading while a court helps it clear its debts.
Those debts are old, the company says, carried over from an earlier phase of the business it cannot grow its way out of. According to Storj's director of software engineering, Kaloyan Raev: "What holds it back are legacy obligations from an earlier chapter." Raev also signed the letter to token holders, not Chief Executive Colby Winegar.
What holders would actually get
Nothing changes for the token today, Storj says. Data still moves across tens of thousands of storage locations in more than 100 countries.
The company plans to offer holders equity in the new Storj, which means part-ownership. The rules for who qualifies have not been written yet, and they will matter: about 143.8 million STORJ trade freely out of 425 million in total, leaving two-thirds of the supply elsewhere.
Bankruptcy also sets a payment order, and creditors come before owners. Storj's letter to token holders admits it can promise intent, not results.
STORJ down about 60% since the Inveniam deal
Inveniam Capital Partners announced it was buying Storj on Oct. 22, 2025, promising no changes to contracts, pricing, or leadership. STORJ traded near $0.1872 that day and has fallen about 60% since. Crypto Briefing reports the deal was structured as a reverse triangular merger, with Inveniam now backing the reorganization.
The token has held up so far, trading near $0.0745, up 1.5% on the day, on $5.6 million of volume and a $10.7 million market value.
A closer warning came this month. MVMT Labs filed Chapter 11 in Delaware on July 15, and its Movement (MOVE) token hit a record low of $0.00964 ten days later.
Binance placed STORJ under a "monitoring tag" in May 2026 as part of a review covering nine tokens. That designation signals potential delisting risk.
Storj says it will share court dates as they land, but the fine print of the equity offer will decide what holders actually get.
Sources: BeInCrypto, Crypto Briefing
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