Blockfills, a Chicago-based crypto trading firm, has filed for bankruptcy as the crypto winter takes its toll on the industry.
On Sunday, BlockFills operator Reliz Ltd. filed and three related entities voluntary Chapter 11 restructuring petitions in the U.S. Bankruptcy Court for the District of Delaware, according to documents seen by CoinDesk.
The court filing shows that Reliz reports assets between $50 million and $100 million against liabilities of $100 million to $500 million, a stark indicator of the mounting pressure in its crypto trading operations.
The company decided to file for bankruptcy after consulting all stakeholders, an official statement said.
“After extensive discussions with investors, customers, creditors and other stakeholders, BlockFills has determined that a voluntary Chapter 11 filing is the most responsible path forward to preserve the value of the company and maximize recovery for stakeholders. This filing will allow the company to complete an orderly restructuring while maintaining transparency and oversight through the courts,” the watchdog said.
“To that end, on March 15, 2026, certain BlockFills-related entities filed a voluntary petition for reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware,” it added.
CoinDesk reported last month that the crypto lender had lost about $75 million and was seeking a buyer or emergency financing.
BlockFills is a crypto trading and lending company that provides liquidity, funding and risk management services to institutional clients. Its platform facilitates crypto lending and borrowing, derivatives trading and over-the-counter (OTC) execution for hedge funds, asset managers, market makers and mining companies.
The company is backed by institutional investors including Susquehanna Private Equity Investments, CME Ventures, Simplex Ventures, C6E and Nexo Inc.
A US federal judge last week issued a temporary restraining order (TRO) against BlockFills in a lawsuit brought by Dominion Capital.
Dominion alleged that the firm misappropriated and improperly withheld millions of dollars in clients’ crypto assets, commingled client funds and concealed significant losses.
BlockFills said on February 11 that it stopped customer withdrawals and deposits due to recent market and financial conditions.
The company said at the time that it was working with investors and customers to reach a quick resolution and restore liquidity to the platform. CoinDesk later reported that the crypto lender had lost about $75 million and was seeking a buyer or emergency financing.
CoinDesk also reported that BlockFill’s co-founder and CEO Nicholas Hammer had stepped down from his leadership role. Joseph Perry is the company’s interim CEO.
BlockFills said it processed more than $60 billion in trade volume by 2025, up 28% from the previous year, and is among the more active institutional crypto lending and borrowing desks. The firm serves around 2,000 institutional clients, including hedge funds, asset managers and mining companies.
Read more: US judge freezes BlockFill’s assets in dispute over 70 bitcoin with creditor Dominion Capital
