TLDR
- Institutional crypto trading platform BlockFills submitted Chapter 11 bankruptcy documents in Delaware on March 15, 2026
- Company disclosed assets valued at $50M–$100M while facing liabilities ranging from $100M–$500M
- Customer withdrawal services were halted in February following approximately $75 million in losses
- Federal court action resulted in the freezing of 70.6 Bitcoin connected to the company after Dominion Capital initiated legal proceedings
- Nicholas Hammer resigned from his position as CEO; Joseph Perry assumed the role on an interim basis
BlockFills, an institutional cryptocurrency trading and lending platform headquartered in Chicago, submitted Chapter 11 bankruptcy documents on March 15, 2026, to the US Bankruptcy Court for the District of Delaware.
Reliz Ltd., the firm’s operational entity, initiated the filing alongside three associated corporate entities. The documentation revealed assets ranging from $50 million to $100 million, while liabilities were estimated between $100 million and $500 million.
The platform delivers liquidity solutions, financing options, and risk-management services to institutional clients such as hedge funds, asset managers, and cryptocurrency mining operations. According to company data, BlockFills facilitated more than $60 billion in trading volume throughout 2025, representing a 28% increase compared to the previous year.
The firm maintains relationships with approximately 2,000 institutional clients and receives financial backing from investors including Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc.
BlockFills halted customer deposit and withdrawal services in February, pointing to challenging market conditions as the primary reason. The company stated it required time to safeguard its operations and client interests while working toward restoring adequate liquidity levels.
According to CoinDesk’s reporting, BlockFills had suffered losses approaching $75 million and had actively pursued acquisition opportunities or emergency capital infusions prior to filing for bankruptcy protection.
Bitcoin’s significant price decline appears to have contributed to the firm’s financial difficulties. The leading cryptocurrency experienced a sharp correction from above $97,000 to below $64,000 during the period from mid-January through early February 2026.
Legal Trouble Added Pressure
In early March, a US court imposed a freeze on 70.6 Bitcoin associated with BlockFills. The judicial action followed a lawsuit filed by client Dominion Capital, which accused the company of improperly handling customer assets and combining funds inappropriately.
Dominion’s legal filing stated that BlockFills executives had acknowledged on several occasions that the company faced a balance sheet deficit and had engaged in commingling customer assets.
A federal judge also granted a temporary restraining order against BlockFills in connection with the Dominion Capital litigation. The court mandated a comprehensive accounting of all customer funds held by the platform.
The Financial Times published a report on March 6 indicating that BlockFills was making preparations for a corporate restructuring and had started engaging legal and consulting professionals for guidance.
Leadership Change at BlockFills
Co-founder and chief executive Nicholas Hammer departed from his leadership position during the unfolding crisis. Joseph Perry received appointment as interim chief executive officer.
In the company’s official public statement, BlockFills characterized the Chapter 11 filing as the “most responsible path forward” following extensive discussions with investors, clients, and creditors.
Management indicated the bankruptcy process would provide necessary time to stabilize operations, secure additional liquidity sources, and evaluate potential strategic transaction opportunities.
The BlockFills situation echoes the 2022 cryptocurrency lending industry crisis, during which prominent firms including Celsius, Voyager Digital, BlockFi, and Genesis all sought bankruptcy protection following severe market contractions.
Joseph Perry currently guides the firm through the court-supervised restructuring proceedings.
