Storj's (STORJ) token fell about 19% over 24 hours to roughly $0.06 after the decentralized storage provider filed for voluntary Chapter 11 bankruptcy protection on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia.
Storj Labs, Inc. said the filing is meant to resolve legacy obligations tied to earlier acquisitions and non-core operations while preserving its decentralized storage network, customer services, and day-to-day operations, which it expects to continue without interruption, subject to court approval.
The firm plans to keep operating in the ordinary course throughout the process, Storj Labs announced. Per the statement, the restructuring is designed to right-size the business and align ownership among management, the decentralized community, token holders, and investors.
Kaloyan Raev, Storj's director of software engineering, called the filing a decisive, positive step. He said the underlying business is strong and right-sized, with legacy obligations from an earlier chapter holding it back, and that the process lets the company resolve them in an orderly way and return to its decentralized roots.
Parent company Inveniam also supports the move. Storj said Inveniam has backed a renewed focus on the company's core storage business since acquiring it and endorses the reorganization as a path to shared ownership among the management team, the decentralized community, token holders, and potential investors.
The filing lands during a heavy month for crypto failures and wind-downs.
BitMEX, the derivatives exchange co-founded by Arthur Hayes in 2014, said it will shut down permanently on Sept. 23 after a strategic review and an unsuccessful sale process. Movement Labs, the original core developer behind the Move-based Ethereum layer-2, also filed for Chapter 11 in Delaware in a case posted July 15, with ousted co-founder Rushikesh Manche reportedly holding the largest unsecured claim at more than $1.6 million.
Former bitcoin miner Poolin filed for Chapter 11 in New Jersey with $173 million in prepetition obligations, setting a $52 million stalking-horse bid for its Texas operations.
BitMart began winding down its trading platform the same week, with global CEO Nenter Chow reportedly saying he was terminated on July 24 and learned of the decision publicly.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
