TL;DR:
BlockFills, the Chicago-based institutional cryptocurrency trading and lending firm, filed a voluntary restructuring petition under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the District of Delaware.
The filing was made by Reliz CI Ltd, the entity that operates the firm, along with three affiliates. According to court documents, the company reports assets of between $50 million and $100 million against liabilities ranging from $100 million to $500 million.
The decision was approved by the board through a written resolution dated March 9. At that time, the directors assessed BlockFills’ liquidity position and its strategic options before concluding that the Chapter 11 process represented the most responsible path to preserve value and maximize recoveries for creditors. The firm retained McDermott Will & Schulte LLP and Katten Muchin Rosenman LLP as legal advisors, along with Berkley Research Group in the role of financial advisor.
The problems began to surface in early February, when BlockFills suspended deposits and withdrawals for its clients, arguing that the measure was “protective” in nature against adverse market conditions. Despite the freeze, the platform kept its operations active for its more than 2,000 institutional clients, including hedge funds and asset managers. In 2025, the firm had processed more than $61 billion in trading volume, 28% more than the previous year.
However, it was revealed that the company had accumulated losses of approximately $75 million and was exploring sale or emergency financing alternatives. Shortly after, Nicholas Hammer, co-founder and CEO, resigned from his position. Joseph Perry took over as interim CEO.
In the week prior to the filing, a federal judge issued a temporary restraining order against BlockFills in the context of a lawsuit filed by Dominion Capital, which accused the firm of misappropriating client assets, commingling funds, and concealing significant losses. Dominion’s claim, valued at $4.7 million and classified as “unliquidated,” is one of the 30 largest unsecured credits included in the filing. The largest belongs to 007 Capital LLC, with $17.1 million.
