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The institutional cryptocurrency lender has submitted a bankruptcy petition following the suspension of withdrawals, resulting in approximately $75 million in losses and facing litigation claiming the misuse of client funds.
Crypto trading firm Blockfills has filed for bankruptcy. (Pixabay)
What to know:
- The institutional cryptocurrency trading and lending company BlockFills has declared bankruptcy, as per a filing reviewed by CoinDesk.
- The firm ceased customer withdrawals in February after experiencing losses of approximately $75 million.
- A U.S. judge recently granted a temporary restraining order against the firm in a lawsuit alleging the misappropriation of customer assets.
Blockfills, a cryptocurrency trading firm located in Chicago, has initiated bankruptcy proceedings as the prolonged downturn in the crypto market impacts the sector.
On Sunday, BlockFills’ operator Reliz Ltd. and three related entities submitted voluntary Chapter 11 restructuring petitions in the U.S. Bankruptcy Court for the District of Delaware, according to documents reviewed by CoinDesk.
The court documents indicate that Reliz reported assets valued between $50 million and $100 million, with liabilities ranging from $100 million to $500 million, highlighting the increasing stress on its cryptocurrency trading activities.
The decision to file for bankruptcy was made after consulting with all relevant stakeholders, as stated in an official announcement.
"Following thorough discussions with investors, clients, creditors, and other stakeholders, BlockFills has concluded that a voluntary Chapter 11 filing is the most prudent course of action to preserve the business’s value and optimize recoveries for stakeholders. This filing will enable the firm to undertake a structured restructuring while ensuring transparency and oversight through the court-supervised process," it noted.
"Accordingly, on March 15, 2026, several BlockFills-related entities submitted a voluntary petition to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware," it added.
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CoinDesk reported last month that the crypto lender suffered losses of around $75 million and was in pursuit of a buyer or emergency funding.
BlockFills is a cryptocurrency trading and lending firm that offers liquidity, financing, and risk management services to institutional clients. Its platform facilitates cryptocurrency lending and borrowing, derivatives trading, and over-the-counter (OTC) execution for hedge funds, asset managers, market makers, and mining companies.
The company is supported by institutional investors such as Susquehanna Private Equity Investments, CME Ventures, Simplex Ventures, C6E, and Nexo Inc.
A U.S. federal judge issued a temporary restraining order (TRO) against BlockFills last week in a lawsuit filed by Dominion Capital.
Dominion alleged that the firm had misappropriated and improperly retained millions in customer cryptocurrency assets, mingled client funds, and concealed substantial losses.
BlockFills announced on Feb. 11 that it was halting customer withdrawals and deposits due to recent market and financial conditions.
At that time, the company indicated that it was collaborating with investors and clients to achieve a rapid resolution and restore liquidity to the platform. CoinDesk later reported that the crypto lender incurred losses of about $75 million and was seeking a buyer or emergency funding.
CoinDesk also noted that BlockFills co-founder and CEO Nicholas Hammer had stepped down from his leadership position. Joseph Perry is now serving as the firm’s interim CEO.
BlockFills reported processing over $60 billion in trading volume in 2025, reflecting a 28% increase from the previous year, and is recognized as one of the more active institutional crypto lending and borrowing desks. The firm caters to around 2,000 institutional clients, including hedge funds, asset managers, and mining firms.
Read more: U.S. judge freezes BlockFills assets in dispute over 70 bitcoin with creditor Dominion Capital
