Crypto lender BlockFills files for Chapter 11 bankruptcy after weeks of turmoil

Crypto trading and lending firm BlockFills has filed for Chapter 11 bankruptcy following weeks of turmoil, capping a months-long downward spiral that involved a temporary halt on client withdrawals.

Reliz Ltd., the entity that operates BlockFills, filed a voluntary petition on Sunday to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Three other relevant entities also filed for bankruptcy.

According to the filing, the company reported estimated assets of $50 million to $100 million and estimated liabilities of $100 million to $500 million, underscoring the scale of its financial distress.

In a statement released Sunday, BlockFills said the chapter 11 process was "the most responsible path forward" following extensive discussions with investors, clients, and creditors. 

"This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process," the company said. It added that the move was intended to "stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions," while maintaining that protecting client interests "remains a priority."

Liquidity challenges

The bankruptcy filing follows weeks of mounting challenges for the company. In February, BlockFills temporarily suspended client deposits and withdrawals, citing "recent market and financial conditions" as it navigates liquidity shortages and stakeholder negotiations.

BlockFills also faced escalating legal pressure. Earlier this month, a U.S. federal judge issued a temporary restraining order against BlockFills in a lawsuit brought by Dominion Capital, temporarily freezing certain assets tied to the dispute.

Dominion accused BlockFills of misappropriating customer assets and refusing to return millions of dollars' worth of crypto assets that Dominion had stored on the Blockfills platform, according to a Feb. 27 court filing.

Chicago-based BlockFills counts Susquehanna Private Equity Investments and CME Group's venture arm among its investors. The firm offered services including liquidity provision, trade execution, and lending, according to its website.

The company said in its 2025 review that it processed over $61 billion in transaction volume in 2025, up 28% from the previous year, and serves over 2,000 institutional clients across more than 95 countries.

The Block has reached out to BlockFills for further information.