Cloud data firm Storj files for Chapter 11, extending a week of crypto failures. Token slides 16%

FinanceCloud data firm Storj files for Chapter 11, extending a week of crypto failures. Token slides 16%The decentralized data storage company says operations continue and proposes that token holders take equity in the restructured business — an unusual arrangement in bankruptcy.By Shaurya Malwa|Edited by Sheldon Reback Jul 27, 2026, 9:15 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowDecentralized cloud storage firm Storj Labs filed for Chapter 11 bankruptcy in West Virginia to address legacy obligations while pledging to keep services running.The restructuring plan proposes sharing ownership of the reorganized company among management, investors and token holders, who typically receive nothing in a Chapter 11 process.The filing caps a week that saw BitMEX and BitMart announce solvent wind-downs and Movement Labs seek Chapter 11 protection as capital and attention continue to shift from crypto to artificial intelligence.Decentralized cloud network Storj Labs said it filed for Chapter 11 bankruptcy, becoming the fourth crypto company in seven days to announce a failure or wind-down as investor interest switches to AI.The filing, lodged in the U.S. Bankruptcy Court for the Northern District of West Virginia, is intended to resolve what the company called legacy obligations from an earlier period while keeping the business running. Storj said it does not expect service interruptions and will continue operating.Of the other firms, Movement Labs, the developer behind the Movement blockchain, also filed for bankruptcy protection. Crypto exchanges BitMEX and BitMart both announced closures.Storj runs a decentralized cloud storage network, paying individuals and businesses to rent out unused disk space rather than operating its own data centers. Last year, it was acquired by Inveniam, which the company said endorses the reorganization and continues to support it. Storj said it is dispos…

Cloud data firm Storj files for Chapter 11, extending a week of crypto failures. Token slides 16%

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