Chicago-based institutional crypto trading firm BlockFills, founded in 2028, has filed for chapter 11 bankruptcy protection, the latest casualty of sustained pressure on digital asset lending businesses.
BlockFills’ operator, Reliz Ltd., along with three affiliated entities, filed voluntary restructuring petitions on March 15 in the U.S. Bankruptcy Court for the District of Delaware, according to court documents reviewed by CoinDesk. The filing shows assets of between $50 million and $100 million set against liabilities of $100 million to $500 million, a gap that underscores the scale of the firm’s financial deterioration.
The company said the decision followed consultations with investors, clients, and creditors. “After extensive discussions with investors, clients, creditors, and other stakeholders, BlockFills has determined that a voluntary chapter 11 filing is the most responsible path forward in order to preserve the value of the business and maximize recoveries for stakeholders,” the firm said in an official statement.
The collapse had been building for weeks. BlockFills halted customer withdrawals and deposits in February, citing deteriorating market and financial conditions. CoinDesk subsequently reported the firm had suffered approximately $75 million in losses and was seeking either a buyer or emergency funding. Co-founder and CEO Nicholas Hammer stepped down in late February, with Joseph Perry taking over as interim chief executive.
Legal troubles compounded the firm’s difficulties. Creditor Dominion Capital filed a lawsuit alleging that BlockFills had misappropriated customer cryptoassets, commingled client funds and concealed significant losses. A U.S. federal judge issued a temporary restraining order against the company in connection with that case.
The bankruptcy filing stands in stark contrast to the firm’s recent operational scale. BlockFills, reported processing more than $60 billion in trading volume in 2025, a 28% increase from the prior year, and served roughly 2,000 institutional clients, including hedge funds, asset managers, and mining companies. Its backers included Susquehanna Private Equity Investments, CME Ventures and Nexo Inc.