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The cryptocurrency lender BlockFills has filed for bankruptcy in the Delaware court, citing a deteriorating situation in the cryptocurrency market.
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According to the documents submitted as part of the bankruptcy process, BlockFills has estimated its asset value to be between $50 million and $100 million, while its liabilities range from $100 million to $500 million.
The filing states that the bankruptcy procedure aims to preserve the business’s value and ensure the “maximum possible recovery” for creditors. This decision follows a series of consultations with investors, clients, creditors, and other stakeholders, as company representatives assert.
BlockFills indicated that prior to filing, various options for addressing the situation were considered, but none were deemed more favorable. According to the cryptocurrency lender’s representatives, the bankruptcy process will provide time to stabilize operations, seek additional liquidity sources, and explore potentially beneficial transactions.
A month ago, BlockFills suspended client deposits and withdrawals. The company explained this action as necessary to protect the business during a sharp decline in the cryptocurrency market and as an attempt to restore liquidity on the platform.
Previously, the Southern District Court of New York froze BlockFills’ assets amounting to 70.6 bitcoins amid a dispute with Dominion Capital.
