TLDR
- Institutional crypto trading platform BlockFills declared Chapter 11 bankruptcy in Delaware on March 15, 2026
- The company disclosed assets valued at $50M–$100M while facing liabilities ranging from $100M–$500M
- Customer withdrawals were halted in February following approximately $75 million in losses
- Federal court action froze 70.6 Bitcoin associated with BlockFills after Dominion Capital filed suit
- Founder Nicholas Hammer resigned as CEO; Joseph Perry assumed interim leadership role
Chicago-headquartered institutional cryptocurrency trading and lending platform BlockFills has initiated Chapter 11 bankruptcy proceedings as of March 15, 2026, filing with the US Bankruptcy Court for the District of Delaware.
Reliz Ltd., the operational entity behind BlockFills, submitted the bankruptcy petition alongside three related companies. Documents revealed assets totaling between $50 million and $100 million, while liabilities ranged from $100 million to $500 million.
The platform specializes in delivering liquidity solutions, financing options, and risk-management tools to institutional market participants, including hedge funds, digital asset managers, and cryptocurrency mining operations. According to company data, BlockFills facilitated over $60 billion in trading activity throughout 2025, representing a 28% year-over-year increase.
The firm’s client roster includes approximately 2,000 institutional entities and counts Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc. among its financial backers.
BlockFills halted both customer deposits and withdrawal requests in February, attributing the decision to worsening market dynamics. Company representatives stated the pause was necessary to safeguard business operations and client interests while working toward liquidity restoration.
According to CoinDesk’s reporting, the firm had incurred losses approaching $75 million and actively pursued acquisition opportunities or emergency capital infusion prior to filing for bankruptcy protection.
Bitcoin’s significant price decline contributed substantially to BlockFills’ financial distress. The leading cryptocurrency plummeted from above $97,000 to below $64,000 during the period spanning mid-January through early February 2026.
Legal Trouble Added Pressure
In early March, a US court issued an order freezing 70.6 Bitcoin linked to BlockFills. This judicial action followed litigation initiated by client Dominion Capital, which accused the firm of misappropriating customer cryptocurrency holdings and improperly combining client funds.
Dominion’s legal complaint alleged that BlockFills leadership had acknowledged on several occasions that the company faced a balance sheet deficit and had engaged in commingling customer assets.
A federal judge additionally imposed a temporary restraining order against BlockFills as part of the Dominion Capital litigation. The court mandated a comprehensive accounting of all customer funds held by the firm.
The Financial Times published a report on March 6 indicating that BlockFills had begun preparing for a potential restructuring and was consulting with legal and financial advisory firms.
Leadership Change at BlockFills
Co-founder and chief executive Nicholas Hammer resigned from his position during the unfolding crisis. The board appointed Joseph Perry to serve as interim CEO.
In its public announcement, BlockFills characterized the Chapter 11 filing as the “most responsible path forward” following extensive consultations with investors, clients, and creditors.
Company officials stated the bankruptcy proceedings would provide necessary time to stabilize operations, secure additional capital, and evaluate potential strategic alternatives or transactions.
The BlockFills bankruptcy echoes the 2022 crypto lending sector meltdown, when prominent firms including Celsius, Voyager Digital, BlockFi, and Genesis all sought bankruptcy protection amid severe market contraction.
Joseph Perry now oversees the company as it navigates the court-supervised restructuring proceedings.
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