Crypto Lender BlockFills Enters Chapter 11 with Up to $500M in Liabilities

Crypto lending and trading company BlockFills has filed for Chapter 11 bankruptcy protection following cash flow problems that led to customers being unable to withdraw their money.

The firm, which processed tens of billions of dollars in trades last year, will now be placed under court supervision as it tries to restructure its debts and stabilize operations.

Bankruptcy Filing Comes After Withdrawals Were Frozen

On March 15, court papers showed that Reliz CI Ltd, the company that operates BlockFills, filed for Chapter 11 proceedings in the U.S. Bankruptcy Court in Delaware. According to the filing, the firm has assets worth between $50 million and $100 million and debts worth between $100 million and $500 million.

The company’s board approved the filing with a written resolution dated March 9, 2026. The resolution said that the directors had looked at the company’s liquidity position and strategic options before deciding that a Chapter 11 case was in its best interest as well as that of its creditors.

Furthermore, the board also agreed to bring several advisers on board to help with the bankruptcy process. These include the law firms McDermott Will & Schulte LLP and Katten Muchin Rosenman LLP, as well as Berkley Research Group, which is a financial advisory company.

In early February, BlockFills stopped deposits and withdrawals, with the move coming at a time when the market had been hit by instability after U.S. President Donald Trump imposed new tariffs against several EU nations and later threatened to place 100% tariffs on Canadian goods as well.

At the time, the company claimed the pause was a “protective measure” that would allow it to address liquidity conditions. During the freeze, it still allowed trading activity for its more than 2,000 institutional clients, including hedge funds and asset managers, who, according to the company, had generated more than $61 billion in trading volume on the platform in 2025, which was a 28% jump from the year before.

Creditor List Shows Exposure Across Crypto and Financial Companies

The Sunday filing included a list of 30 of the largest unsecured creditors, with claims ranging from $1 million to more than $17 million. The largest belonged to 007 Capital LLC with an unsecured amount of about $17.1 million, followed by the Richard E. Ward Revocable Trust at about $9.4 million and Artha Investment Partners LLC at just under $7 million.

Other creditors are crypto companies and financial institutions like Nexo Capital and Dominion Capital. The Chicago Blackhawks hockey team also appeared in the document as a disputed trade creditor owed about $1.26 million.

Additionally, some claims, including Dominion’s $4.7 million, are listed as “unliquidated,” which means that the final amount may change as the case goes on. Dominion previously accused BlockFills of misappropriating client funds and refusing to return crypto worth millions of dollars that it had kept on the trading platform.

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