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.
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.