Storj Labs filed for Chapter 11 bankruptcy protection on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia, case number 5:26-bk-00512, after raising about $35 million through venture funding, grants and a 2017 STORJ token sale. The company said the filing is intended to restructure legacy debt while allowing its decentralized cloud storage services to continue operating. Storj plans to propose shared ownership for its management team, investors, community members and STORJ token holders, a structure that remains under consideration. The company said its services, network and core business will continue during the bankruptcy process, subject to court approval. The firm said it is narrowing its focus to its core cloud storage and compute offerings and is disposing of operations that are not central to its main business. Inveniam, which agreed in October 2025 to acquire Storj, said the company will remain a separate legal entity and operate as its subsidiary while existing customer, supplier and community relationships are maintained. Storj reported that the STORJ token price fell after the filing, but that token utility and network operations remain unchanged. The company emphasized that it does not anticipate any interruptions to customer services, though bankruptcy rules may require certain decisions to receive court approval. Other crypto firms, including Poolin and Movement Labs, have also filed for Chapter 11 protection in recent months. The court will review the proposed reorganization plan, creditor claims and ownership structure, with details of the plan and conversion terms for token holders yet to be disclosed.