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Storj Labs files Chapter 11 as Upbit flags STORJ and halts deposits

Storj Labs files Chapter 11 as Upbit flags STORJ and halts deposits

Storj said its decentralized cloud storage services and token utility will continue during Chapter 11, while Upbit designated STORJ a trading warning asset and suspended deposits after the filing.

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Fact Check
The official GlobeNewswire press release and Storj's own open letter on storj.io directly confirm the Chapter 11 filing to resolve legacy liabilities, continued operation of the network and token, and a proposed equity mechanism for token holders that requires court approval and respects legal (creditor) priorities. Independent outlets BeInCrypto and CryptoBriefing corroborate each element, explicitly noting creditors will be paid before equity holders and that the plan needs judicial approval. All distinct claim elements are verified by primary sources.
Summary

Storj Labs said it filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of West Virginia, Case No. 5:26-bk-00512, to address legacy liabilities while keeping its decentralized cloud storage business running. The company said operations, network services and STORJ token functions will continue as usual during the court-supervised process, with support from parent company Inveniam. Storj also said it intends to propose a plan mechanism that could let token holders participate in the equity of the restructured company, though any outcome remains subject to court approval and bankruptcy-law priorities. After the filing, Upbit, South Korea’s largest crypto exchange, designated STORJ a trading warning asset and suspended deposits, a step that can pressure liquidity and sentiment.

Terms & Concepts
  • Chapter 11: A U.S. bankruptcy process that allows a company to keep operating while it reorganizes its debts under court supervision.
  • trading warning asset: An exchange risk designation indicating elevated concerns around a token and sometimes leading to trading or deposit restrictions.
  • decentralized cloud storage: A system that stores data across independently operated providers rather than relying on company-owned centralized servers.