TLDR
- Institutional crypto trading platform BlockFills declared Chapter 11 bankruptcy in Delaware on March 15, 2026
- Company disclosed assets ranging from $50M to $100M while facing liabilities between $100M and $500M
- Customer withdrawals were halted in February following approximately $75 million in losses
- Federal court froze 70.6 BTC associated with BlockFills after client Dominion Capital filed lawsuit
- Co-founder Nicholas Hammer resigned as CEO; Joseph Perry appointed as interim chief executive
On March 15, 2026, BlockFills—a Chicago-headquartered institutional cryptocurrency trading and lending platform—submitted a Chapter 11 bankruptcy petition to the US Bankruptcy Court for the District of Delaware.
Reliz Ltd., the primary operating entity, filed the petition alongside three related companies. The bankruptcy documents revealed assets valued between $50 million and $100 million, while liabilities ranged from $100 million to $500 million.
Specializing in liquidity provision, financing solutions, and risk management for institutional investors, BlockFills caters to hedge funds, asset management firms, and cryptocurrency mining operations. According to the company, it facilitated over $60 billion in trading volume throughout 2025—representing a 28% increase compared to the previous year.
The platform maintains relationships with approximately 2,000 institutional clients and counts Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc. among its backing investors.
In February, BlockFills announced the suspension of both customer deposits and withdrawals, attributing the decision to worsening market dynamics. Company officials stated they required additional time to safeguard the business and client interests while working toward restoring adequate liquidity levels.
According to CoinDesk’s reporting, BlockFills had sustained losses approximating $75 million and actively pursued acquisition opportunities or emergency capital infusion prior to initiating bankruptcy proceedings.
Bitcoin’s significant price decline likely contributed to the firm’s financial distress. The leading cryptocurrency plummeted from above $97,000 to below $64,000 between mid-January and early February 2026.
Legal Trouble Added Pressure
In early March, a federal court ordered the freezing of 70.6 Bitcoin linked to BlockFills. This action followed litigation initiated by Dominion Capital, a client alleging misappropriation of customer assets and improper commingling of funds.
Dominion Capital’s complaint alleged that BlockFills leadership had repeatedly acknowledged having a balance sheet deficit and improperly mixing customer holdings.
A federal judge additionally granted a temporary restraining order against BlockFills in connection with the Dominion Capital case. The court mandated a comprehensive accounting of all customer funds.
The Financial Times disclosed on March 6 that BlockFills was preparing for potential restructuring and had started engaging legal and consulting professionals.
Leadership Change at BlockFills
Co-founder and chief executive Nicholas Hammer resigned from his position during the unfolding crisis. The company appointed Joseph Perry as interim CEO to navigate the restructuring process.
In an official company statement, BlockFills characterized the Chapter 11 filing as the “most responsible path forward” following extensive consultations with investors, clients, and creditors.
Management indicated that the bankruptcy proceedings would provide necessary time to stabilize operations, secure additional liquidity, and evaluate potential strategic alternatives.
The BlockFills situation echoes the 2022 cryptocurrency lending sector meltdown, when prominent firms including Celsius, Voyager Digital, BlockFi, and Genesis all sought bankruptcy protection amid severe market deterioration.
Joseph Perry currently oversees the firm’s operations as it navigates the court-supervised reorganization proceedings.
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