BlockFills Files for Chapter 11 Bankruptcy Protection in Delaware
According to the company, BlockFills entered court-supervised Chapter 11 proceedings after withdrawal suspensions and a federal asset freeze order, with Reliz Ltd. reporting $100 million to $500 million in estimated liabilities.
The filing is corroborated by a detailed report from BlockBeats (March 16, 2026) and supported by a clear timeline of financial distress (asset freezes and withdrawal halts) reported by Crowdfund Insider and OffshoreAlert in the days leading up to the filing. The specific details regarding the Delaware court and the company's stated objectives align with standard Chapter 11 procedures for crypto firms in distress.
Institutional crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy protection in Delaware through operating entity Reliz Ltd., with estimated assets of $50 million to $100 million and liabilities of $100 million to $500 million. The company had suspended customer withdrawals and deposits on Feb. 11, citing market and financial conditions. A new update says three affiliated entities also filed in Delaware and that the bankruptcy followed both the withdrawal halt and a federal asset freeze order. BlockFills said court-supervised proceedings were the most responsible path forward. Earlier reporting also identified 007 Capital LLC as a major unsecured creditor with about $17.1 million in claims, alongside litigation alleging misuse and commingling of customer assets and leadership changes that saw co-founder and CEO Nicholas Hammer step down while Joseph Perry became interim CEO.
- Chapter 11 bankruptcy: A U.S. court-supervised restructuring process that allows a company to keep operating while reorganizing debts and seeking recoveries for creditors.
- unsecured creditor: A creditor whose claim is not backed by specific collateral, meaning repayment depends on the bankruptcy process and remaining estate assets.
- OTC: Over-the-counter trading refers to direct transactions between parties instead of on a public exchange, commonly used for large institutional crypto trades.