Crypto trading and lending firm BlockFills files for Chapter 11 bankruptcy in Delaware after halting customer transactions
The Facts
- BlockFills (via its operator Reliz Ltd. and related entities) filed voluntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the District of Delaware.
- The bankruptcy filing followed BlockFills suspending customer deposits and/or withdrawals in the weeks prior.
- Court filings reported assets in the range of about $50 million to $100 million and liabilities in the range of about $100 million to $500 million.
- BlockFills said the Chapter 11 process is intended to enable an orderly restructuring aimed at preserving business value and maximizing recoveries for stakeholders.
- Multiple reports cite losses of roughly $75 million connected to trading/lending or liquidity pressures as part of the firm’s financial strain.
- A lawsuit by creditor Dominion Capital led to a court order freezing Bitcoin tied to a dispute and requiring the firm to account for and segregate customer funds.
Context
What exactly filed for bankruptcy—BlockFills or another entity?
Reports say BlockFills’ operator, Reliz Ltd., filed Chapter 11 in Delaware along with three affiliated entities, with the cases intended to restructure the business under court supervision Cointelegraph Decrypt.
What do the bankruptcy documents indicate about BlockFills’ balance sheet?
Court filings cited by multiple outlets list assets of about $50 million to $100 million and liabilities of about $100 million to $500 million, indicating liabilities may substantially exceed assets CoinDesk Cryptopolitan CryptoPotato.
Why did a court freeze Bitcoin connected to BlockFills?
According to reporting, creditor Dominion Capital sued over a client dispute and alleged mishandling of customer assets; a judge ordered Bitcoin tied to the dispute frozen and directed the firm to account for and segregate customer funds Decrypt Investing.com.
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