Crypto trading and liquidity provider BlockFills has entered Chapter 11 bankruptcy proceedings after weeks of operational disruption, legal pressure, and reported financial losses.
The Chicago-based firm confirmed that certain entities connected to its platform filed voluntary restructuring petitions on March 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware. The filing followed an earlier decision to suspend client deposits and withdrawals.
BlockFills described the restructuring as a necessary step to stabilize the business and address obligations to clients and creditors.
🚨 BlockFills just filed for Chapter 11 bankruptcy.
— HodlFM (@Hodl_fm) March 16, 2026
Here's how fast it collapsed:
→ $61 billion in trading volume in 2025
→ 2,000+ clients across 95 countries
→ February 2026: deposits and withdrawals frozen
→ Now: $50-100M in assets vs. up to $500M in liabilities
A… pic.twitter.com/MHJTDTSasP
Company cites restructuring as “most responsible path forward”
BlockFills published a statement explaining the decision to seek court protection.
"After extensive discussions with investors, clients, creditors, and other stakeholders, BlockFills has determined that a voluntary chapter 11 filing is the most responsible path forward in order to preserve the value of the business and maximize recoveries for stakeholders. This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process."
The company also confirmed the timing and location of the filing.
"To that end, on March 15, 2026, certain BlockFills-related entities filed a voluntary petition to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware."
The firm stated that it intends to work with creditors and clients during the restructuring process.
"The BlockFills team has worked diligently to pursue and evaluate all available strategic and financial alternatives and believes initiating a chapter 11 process, with the intention of consummating a consensual restructuring with our clients and creditors, will provide the necessary time and structure to stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions."
Withdrawal halt preceded the bankruptcy filing
The bankruptcy follows a series of operational challenges that began earlier this year.
BlockFills halted customer withdrawals and deposits on Feb. 11. The company cited market and financial conditions at the time and said it needed time to restore liquidity to the platform.
Subsequent disclosures revealed that the firm had suffered losses of roughly $75 million tied to lending, trading, and crypto mining operations.
CoinDesk previously reported that BlockFills had explored options that included emergency funding or a potential sale of the business.
Court documents later revealed a widening financial imbalance. Reliz Ltd., the company that operates BlockFills, reported assets between $50 million and $100 million. Liabilities ranged between $100 million and $500 million.
Lawsuit from Dominion Capital intensified pressure
Legal action from a creditor added further strain on the firm before the bankruptcy filing.
Dominion Capital filed a complaint on Feb. 27 that alleged BlockFills commingled customer assets with company funds and misused those assets for mining operations and unsecured loans. Dominion also alleged that the firm concealed losses while retaining customer funds.
Dominion claimed it held about 70.5 Bitcoin on the platform when BlockFills halted withdrawals.
A federal judge issued a temporary restraining order on March 3 that barred the company from transferring roughly 70.6 BTC connected to the dispute. The court also ordered BlockFills to account for and segregate customer holdings.
The restraining order placed additional legal oversight on the company’s operations as the dispute continued.
Leadership changes and restructuring advisers
The company also underwent leadership changes during the crisis.
BlockFills co-founder and CEO Nicholas Hammer stepped down from his role in February 2026. Joseph Perry assumed the position of interim CEO.
The firm retained consulting firm Berkeley Research Group and law firm Katten Muchin Rosenman to advise on restructuring strategy. Mark Renzi joined the company as chief transformation officer to guide operational changes during the process.
Institutional trading platform under strain
BlockFills operates an institutional crypto trading and lending platform. The firm provides liquidity, derivatives execution, lending services, and risk-management tools to hedge funds, asset managers, market makers, and mining companies.
The company reported more than $60 billion in trading volume during 2025. That figure represented a 28% increase from the previous year.
BlockFills also counted about 2,000 institutional clients across its platform.
Several venture and institutional investors supported the company, including Susquehanna Private Equity Investments, CME Ventures, Simplex Ventures, C6E, and Nexo Inc.
Despite that growth, the balance sheet pressure and legal dispute forced the company into a restructuring process.
Questions remain about customer asset treatment
The bankruptcy raises questions about how customer assets held on crypto trading platforms are treated during insolvency proceedings.
In prior crypto bankruptcies, courts examined whether deposited digital assets belonged to customers or formed part of the bankruptcy estate. The distinction determines whether clients hold priority claims or rank alongside unsecured creditors.
BlockFills said it will continue communication with clients and creditors during the court-supervised restructuring.
The firm stated that protecting client interests remains a priority while the Chapter 11 process unfolds.
Matvii Diadkov
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