TLDR
- BlockFills, an institutional crypto trading platform based in Chicago, declared Chapter 11 bankruptcy in Delaware on March 15, 2026
- The 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
- A federal court ordered the freezing of 70.6 Bitcoin linked to BlockFills after client Dominion Capital filed a lawsuit
- Nicholas Hammer resigned from his position as CEO; Joseph Perry assumed the role as interim chief executive
An institutional cryptocurrency trading and lending platform headquartered in Chicago, BlockFills, initiated Chapter 11 bankruptcy proceedings on March 15, 2026, through the US Bankruptcy Court for the District of Delaware.
Following our previous communication regarding the temporary suspension of client deposits and withdrawals, BlockFills wishes to provide an important update.
After extensive discussions with investors, clients, creditors, and other stakeholders, BlockFills has determined that a…
— BlockFills (@blockfills) March 15, 2026
Reliz Ltd., the company’s primary operating entity, submitted the bankruptcy petition alongside three related corporate entities. The filing 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 tools for institutional investors, BlockFills caters to hedge funds, asset management firms, and cryptocurrency mining operations. According to company data, the platform facilitated over $60 billion in trading volume throughout 2025, representing a 28% increase compared to the previous year.
With approximately 2,000 institutional clients in its network, the firm has received backing from notable investors such as Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc.
BlockFills halted all customer deposits and withdrawals in February, attributing the decision to worsening market dynamics. The company indicated it required additional time to safeguard its operations and client interests while working toward restoring adequate liquidity levels.
According to CoinDesk’s reporting, the platform had sustained losses totaling approximately $75 million and had actively pursued acquisition opportunities or emergency capital infusions prior to initiating bankruptcy proceedings.
The firm’s financial difficulties appear connected to Bitcoin’s significant price decline. 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 federal court issued an order freezing 70.6 Bitcoin associated with BlockFills. This action followed litigation initiated by Dominion Capital, a client alleging misappropriation of customer assets and improper commingling of funds.
According to Dominion’s allegations, BlockFills leadership had repeatedly acknowledged experiencing balance sheet deficiencies and engaging in the practice of mixing customer assets.
The presiding federal judge additionally granted a temporary restraining order against BlockFills in connection with the Dominion Capital litigation. The court mandated a comprehensive accounting of all customer funds as part of the legal proceedings.
The Financial Times published a report on March 6 indicating that BlockFills had begun preparing for a corporate restructuring and was actively consulting with legal and advisory professionals.
Leadership Change at BlockFills
Co-founder Nicholas Hammer resigned from his position as chief executive officer during the unfolding crisis. Joseph Perry was subsequently appointed to serve as interim CEO.
In an official company statement, BlockFills characterized the Chapter 11 bankruptcy filing as the “most responsible path forward” following extensive consultations with investors, clients, and creditors.
The firm indicated that the bankruptcy process would provide necessary time to achieve operational stability, secure additional liquidity sources, and evaluate potential strategic alternatives or transactions.
The failure of BlockFills echoes the widespread crypto lending crisis of 2022, during which prominent firms including Celsius, Voyager Digital, BlockFi, and Genesis all sought bankruptcy protection following severe market contractions.
Under Joseph Perry’s interim leadership, the company is navigating the court-supervised restructuring proceedings.
