Storj Labs Files Chapter 11 Citing 2017 Token Sale Debt With Equity Conversion Proposed
Storj Labs filed for Chapter 11 bankruptcy on July 26, 2026, attributing the restructuring primarily to legacy obligations tied to a $30 million STORJ token sale from 2017. The company has stated an intention to allow STORJ tokenholders to convert their positions into equity in the reorganized entity, though no mechanics, valuation methods, or court approval exist yet. The STORJ token fell 15–18% following the announcement, trading near $0.06 against a market cap of roughly $26–27 million, while key details including a full creditor schedule and any debtor-in-possession financing remain undisclosed.