- BlockFills filed Chapter 11 after reporting $50–$100M in assets against $100–$500M in liabilities.
- The firm suspended client withdrawals in February as liquidity pressures and a $75M loss emerged.
- A Dominion Capital lawsuit alleging asset misappropriation led to a court order freezing some assets.
Crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy on March 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware after suspending client withdrawals and facing legal pressure. The filing came from Reliz Ltd., the company operating BlockFills, alongside three affiliated entities. The restructuring move followed liquidity shortages and an asset freeze tied to Dominion Capital’s allegations of asset misappropriation.
Bankruptcy Filing Reveals Balance Sheet Strain
Reliz Ltd., the operator behind BlockFills, submitted a voluntary restructuring petition on Sunday. The filing took place in the U.S. Bankruptcy Court for the District of Delaware. According to the court documents, the company reported assets between $50 million and $100 million. However, liabilities ranged from $100 million to $500 million.
The figures revealed a significant gap between assets and obligations. Consequently, the company sought court protection to restructure its operations. BlockFills said the bankruptcy process followed discussions with investors, clients, and creditors. In a statement, the firm described Chapter 11 as the most responsible path forward.
The company said the court-supervised process would allow orderly restructuring. It also aims to stabilize operations and explore strategic transactions. Additionally, BlockFills said it intends to seek new liquidity sources during the process. The firm also stated that protecting client interests remains a priority.
Withdrawal Halt Preceded Bankruptcy Move
Before the filing, BlockFills had already restricted platform activity. In February, the company suspended client deposits and withdrawals. According to the firm, market and financial conditions triggered the suspension.
At the time, BlockFills said it was negotiating with investors and stakeholders. Liquidity constraints intensified pressure on the trading platform. Meanwhile, reports indicated the company had lost about $75 million.
According to previous disclosures, BlockFills processed more than $61 billion in trading volume in 2025. That figure represented a 28% increase from the previous year. The company also served over 2,000 institutional clients across more than 95 countries. Its services included liquidity provision, lending, and trade execution.
Dominion Capital Lawsuit Adds Legal Pressure
Legal disputes also complicated the company’s financial situation. Earlier this month, a U.S. federal judge issued a temporary restraining order. The order followed a lawsuit filed by Dominion Capital.
According to court filings dated Feb. 27, Dominion accused BlockFills of misappropriating client assets. Dominion alleged the firm retained millions of dollars in cryptocurrency stored on the platform.
The lawsuit also claimed the company commingled client funds. As the dispute continued, the court temporarily froze certain assets linked to the case. Meanwhile, the company continued restructuring under Chapter 11 protection.
BlockFills is backed by investors including Susquehanna Private Equity Investments and CME Group’s venture arm.
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