Crypto trading and lending firm Blockfills has filed for Chapter 11 bankruptcy in the United States.
This is the latest setback for a once-prominent institutional crypto desk and the broader crypto lending market.
The filing comes after months of financial pressure, a temporary halt on client withdrawals and growing legal disputes with counterparties.
Related: 'Black Swan' author warns investors to brace for bankruptcies
BlockFills journey into crypto lending
Founded as an institutional crypto trading desk, Blockfills built its reputation for offering liquidity, trade execution and lending services to hedge funds, asset managers and mining companies.
Backed by investors including Susquehanna Private Equity Investments and CME Group’s venture arm, the firm served more than 2,000 institutional clients across over 95 countries.
At its peak, Blockfills reported processing more than $61 billion in transaction volume in 2025. It was a 28% increase from the previous year.
However, the broader downturn in digital asset markets reportedly resulted in roughly $75 million in losses, according to reports citing anonymous sources.
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Liquidity crisis pushes Blockfills into Chapter 11
Court documents show that Reliz Ltd., an entity tied to Blockfills, filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware on March 15, 2026.
In a s tatement released on March 15, Blockfills described the bankruptcy filing as “the most responsible path forward."
The firm also said the court-supervised restructuring would help stabilize the business and explore potential strategic alternatives.
"The BlockFills team has worked diligently to pursue and evaluate all available strategic and financial alternatives and believes initiating a chapter 11 process, with the intention of consummating a consensual restructuring with our clients and creditors, will provide the necessary time and structure to stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions."
The filing indicates the company’s estimated assets and liabilities fall within the $100 million to $500 million range, suggesting a sizable restructuring effort for the firm and its creditors.
The board of Reliz Ltd. previously approved the bankruptcy filing after reviewing the firm’s liabilities, liquidity constraints, and available strategic options, according to internal resolutions attached to the court petition.
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Withdrawals halt, legal disputes deepen troubles
The bankruptcy follows a difficult period for the Chicago-based firm.
In February, Blockfills temporarily suspended client deposits and withdrawals, citing “recent market and financial conditions” while negotiating with stakeholders over its liquidity position.
The company also faced mounting legal pressure. Earlier in March, a U.S. federal judge issued a temporary restraining order in a lawsuit filed by Dominion Capital.
Dominion accused Blockfills of misappropriating customer assets and failing to return millions of dollars worth of crypto held on its platform, according to a Feb. 27 court filing.
Meanwhile, leadership changes added further uncertainty. Co-founder Nicholas Hammer had stepped down from the CEO role months earlier, and the company currently lists Joseph Perry as interim CEO.
Despite the turmoil, Blockfills said its trading platform remained partially operational, allowing clients to open and close positions in certain spot and derivatives markets.
Related: Crypto Price Check: Bankruptcies Taking Sector into Uncharted Waters
This story was originally published by TheStreet on Mar 16, 2026, where it first appeared in the Bankruptcy News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
