Crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy on March 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware. The move followed a suspension of client withdrawals and mounting legal pressure. Reliz Ltd., the company behind BlockFills, submitted the petition alongside three affiliated entities. Liquidity shortages and an asset freeze linked to Dominion Capital's allegations of asset misappropriation drove the restructuring filing.
Wide Gap Between Assets and Liabilities
According to court documents, Reliz Ltd. reported assets between $50 million and $100 million, but liabilities ranged from $100 million to $500 million. The significant imbalance pushed the company to seek court protection for restructuring. BlockFills stated the bankruptcy process followed discussions with investors, clients, and creditors, describing Chapter 11 as "the most responsible path forward."
The firm said the court-supervised process would enable orderly restructuring, stabilize operations, and allow exploration of strategic transactions. BlockFills intends to secure new liquidity sources during the process, while maintaining that protecting client interests remains a top priority.
Withdrawals Suspended, $75M Loss Reported
Before the filing, BlockFills had already restricted platform activity. In February, the company suspended client deposits and withdrawals, citing market and financial conditions as triggers. At that time, BlockFills said it was negotiating with investors and stakeholders. Reports indicated the company had lost approximately $75 million amid the liquidity crunch.
Just a year earlier, BlockFills had shown robust growth. In 2025, it processed over $61 billion in trading volume, a 28% increase year-over-year. The platform served more than 2,000 institutional clients across over 95 countries, offering liquidity provision, lending, and trade execution services.
Legal Dispute Complicates Situation
Legal troubles worsened the company's financial woes. Earlier this month, a U.S. federal judge issued a temporary restraining order after Dominion Capital filed a lawsuit. Court filings dated Feb. 27 allege that BlockFills misappropriated client assets and retained millions of dollars in cryptocurrency stored on the platform. The suit also claims the company commingled client funds. The court temporarily froze certain assets tied to the case. BlockFills continues restructuring under Chapter 11 protection.
BlockFills is backed by investors including Susquehanna Private Equity Investments and the venture arm of CME Group.