BlockFills Files Chapter 11 After $75M Loss
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- BlockFills filed for Chapter 11 bankruptcy on March 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware, with operator Reliz Ltd. and three affiliated entities submitting voluntary restructuring petitions
- Reliz Ltd. reported assets of $50–100 million against liabilities of $100–500 million, a gap that underscores the severity of the firm's financial distress
- The firm halted customer withdrawals and deposits on Feb. 11 after suffering approximately $75 million in losses, initially seeking a buyer or emergency funding before pivoting to bankruptcy
- A U.S. federal judge issued a temporary restraining order against BlockFills in a lawsuit by Dominion Capital alleging the firm misappropriated and commingled millions in customer crypto assets while concealing losses
- CEO Nicholas Hammer stepped down from his leadership role, with Joseph Perry now serving as interim CEO
- BlockFills processed more than $60 billion in trading volume in 2025, up 28% year-over-year, and serves roughly 2,000 institutional clients including hedge funds, asset managers, and mining firms
Why it matters: BlockFills served about 2,000 institutional clients and processed $60 billion in 2025 trading volume, so a Chapter 11 filing with liabilities up to five times reported assets puts customer crypto deposits and the firm's $75 million loss squarely in the crosshairs of the court-supervised restructuring. The Dominion Capital lawsuit and federal TRO now layer potential misappropriation claims onto the bankruptcy process, meaning creditors and clients are likely to recover far less than they deposited.
