Crypto Lender BlockFills Enters Chapter 11 With $500M in Debt

BlockFills filed for Chapter 11 protection in Delaware, reporting up to $500M in liabilities and $100M in assets.

Crypto-lending firm BlockFills has filed for Chapter 11 bankruptcy protection following cash flow problems that resulted in customers being unable to withdraw their money.

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

Bankruptcy Filing Comes After Freeze Is Lifted

On March 15, court documents show that Reliz CI Ltd, the company that operates BlockFills, filed for Chapter 11 bankruptcy in US Bankruptcy Court in Delaware. According to the filing, the company has assets between $50 million and $100 million and liabilities worth between $100 million and $500 million.

The company’s board approved the filing in a written resolution dated March 9, 2026. The resolution said directors considered the company’s solvency and strategic options before deciding whether a Chapter 11 case would be in the best interest of it and its creditors.

In addition, the board also agreed to bring several consultants on board to assist with the bankruptcy process. These include law firms McDermott Will & Schulte LLP and Katten Muchin Rosenman LLP, and Berkley Research Group, a financial advisory firm.

In early February, BlockFills suspended deposits and withdrawals, later coming at a time when the market was hit by instability after US President Donald Trump imposed new tariffs on several EU countries and later threatened to impose 100% tariffs on Canadian goods as well.

At the time, the company said the temporary suspension was a “precautionary measure” that would allow it to face insolvency. During the freeze, it was still allowing trading activity for its more than 2,000 institutional clients, including hedge funds and asset managers, who, according to the company, generated more than $61 billion in trading volume on the platform by 2025, which was a 28% jump from last year.

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List of Creditors Shows Exposure to All Crypto and Financial Companies

Sunday’s filing includes a list of 30 large unsecured creditors, with claims ranging from $1 million to more than $17 million. The largest was owned by 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 such as Nexo Capital and Dominion Capital. The Chicago Blackhawks hockey team also appeared in the document as a borrower of approximately $1.26 million.

Additionally, some claims, including Dominion’s $4.7 million, are listed as “disallowed,” meaning the final amount could change as the case progresses. Dominion previously accused BlockFills of misappropriating customer funds and refusing to return millions of dollars worth of crypto it had stored on the exchange.