BlockFills, a Chicago-based institutional crypto trading and lending firm, has filed for Chapter 11 bankruptcy as the prolonged crypto winter squeezes industry players.
On March 15, 2026, Reliz Ltd., the operator of BlockFills, and three affiliated entities submitted voluntary Chapter 11 restructuring petitions in the U.S. Bankruptcy Court for the District of Delaware, according to court documents reviewed by CoinDesk. Reliz reported assets of $50 million to $100 million against liabilities of $100 million to $500 million — a sharp imbalance that underscores the pressure on the firm’s trading and lending operations.
BlockFills said the decision followed “extensive discussions with investors, clients, creditors, and other stakeholders,” and that a Chapter 11 filing is “the most responsible path forward” to preserve value and maximize recoveries while implementing an orderly, court-supervised restructuring.
The filing comes amid mounting operational and legal troubles. Last week a U.S. federal judge issued a temporary restraining order against BlockFills in a lawsuit brought by Dominion Capital, which alleges the firm misappropriated and improperly retained millions in customer crypto assets, commingled client funds and concealed significant losses. Separately, BlockFills paused customer withdrawals and deposits on Feb. 11, citing adverse market and financial conditions, and has since been pursuing buyers or emergency financing after reports it lost roughly $75 million.
Leadership has also shifted: co-founder and CEO Nicholas Hammer stepped down and Joseph Perry was named interim CEO.
BlockFills is a prominent institutional desk, providing liquidity, financing and risk-management services — including crypto lending and borrowing, derivatives trading and OTC execution — to roughly 2,000 institutional clients such as hedge funds, asset managers, market makers and mining companies. The firm reported processing more than $60 billion in trading volume in 2025, a 28% increase year-over-year, and counts backers including Susquehanna Private Equity Investments, CME Ventures, Simplex Ventures, C6E and Nexo Inc.
As BlockFills moves through Chapter 11, the process will be overseen by the Delaware bankruptcy court while the company seeks to stabilize operations and pursue recoveries for stakeholders.
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