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Crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy in the United States.
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The company reported assets between $50 million and $100 million and liabilities between $100 million and $500 million.
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The bankruptcy follows weeks of liquidity issues and a halt on client withdrawals.
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BlockFills said the restructuring process will allow it to stabilize operations and explore strategic options.
BlockFills Begins Bankruptcy Restructuring
Crypto trading and lending firm BlockFills has filed for Chapter 11 bankruptcy protection after weeks of financial and operational challenges.
The filing was submitted by Reliz Ltd., the entity operating BlockFills, in the U.S. Bankruptcy Court for the District of Delaware. Three related entities also filed for bankruptcy alongside the main company.
According to court documents, the company reported estimated assets between $50 million and $100 million. Its liabilities were significantly higher, ranging between $100 million and $500 million.
Liquidity Crisis Triggered Withdrawal Suspension
The bankruptcy follows a difficult period for the company. In February, BlockFills temporarily suspended client deposits and withdrawals as it struggled with liquidity shortages.
The firm said the decision came after reviewing market conditions and engaging with stakeholders to find solutions.
The Chapter 11 process will allow the company to restructure its finances under court supervision while negotiating with creditors and exploring options to recover liquidity.
Legal Pressure Added to Financial Challenges
BlockFills also faced legal issues during its financial decline. Earlier this month, a U.S. federal judge issued a temporary restraining order in a lawsuit brought by Dominion Capital.
The lawsuit alleged that BlockFills misused customer assets and failed to return millions of dollars in crypto holdings stored on the platform.
The court order temporarily froze certain assets connected to the dispute.
Institutional Crypto Firm Under Stress
Despite the recent turmoil, BlockFills had previously positioned itself as a major institutional crypto services provider. The company offered liquidity provision, trade execution, and lending services to institutional clients.
According to its 2025 review, the firm processed more than $61 billion in trading volume during the year and served over 2,000 institutional clients across more than 95 countries.
Through the bankruptcy process, the company said it plans to stabilize operations, seek additional funding sources, and explore strategic transactions aimed at preserving value for stakeholders.
