Storj Files for Bankruptcy Protection, Raising Uncertainty for STORJ Token Holders
Storj Labs has filed for Chapter 11 bankruptcy protection in a federal court in West Virginia. The company claims its network and the STORJ token remain functional despite financial difficulties rooted in legacy obligations from an earlier phase of operations. Storj is seeking to offer equity in the restructured company to token holders, but this will require judicial approval and must come after creditors are paid. Approximately 143.8 million STORJ tokens trade freely out of a total supply of 425 million, with two-thirds held elsewhere. The value of STORJ has dropped by about 60% since October 2025 when Inveniam Capital Partners announced its acquisition plans for Storj. Recent events in the crypto space, such as MVMT Labs filing Chapter 11 and a subsequent drop in their token's price, have raised concerns among investors. The company assures that nothing changes immediately for STORJ holders or network operations but acknowledges it can only promise intent at this stage. The final terms of any equity offering will be critical to determining the actual value returned to token holders.
Topics: blockchain decentralized storage STORJ token token holders