Blockfills seeks bankruptcy protection amid crypto liquidity crunch

U.S.-based crypto lending and trading platform Blockfills has filed for Chapter 11 in Delaware amid the ongoing crypto market selloff. The platform listed $50M–$100M in assets against $100M–$500M in liabilities.

The crypto market has recorded yet another notable collapse. Blockfills, a Chicago-based crypto trading and lending platform, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, following the prolonged crypto market selloff. Court documents obtained by Cryptopolitan reveal that Reliz Technology Group, the parent company and operator of BlockFills, was struggling with a liquidity crisis after it listed $50M–$100M in assets against $100M–$500M in unsecured creditor claims.

Reliz Technology Group files for bankruptcy, citing harsh market conditions

The bankruptcy petition indicates that the crypto lender and its affiliated entities have sought joint court protection amid ongoing efforts to reorganize their operations and address mounting liabilities. On March 9, the company’s board of directors unanimously approved the bankruptcy petition.

“The Board has had the opportunity to consult with the financial and legal advisors of the Company and to fully consider each of the strategic alternatives available to the Company,” the board’s written consent stated. 

The company’s largest unsecured creditors collectively represent claims totaling over $50 million. 007 Capital LLC is the lender’s largest creditor with $17.1 million in owed assets. Blockfills owes Richard E. Ward Revocable Trust $9.4 million, the second largest claim after 007 Capital LLC. Artha Investment Partners LLC and SBI VC Trade Co. Ltd. are owed $6.9 million and $6.3 million, respectively.

Dorado Family Holdings LP holds a claim of $5.7 million, while Nexo Capital Inc. has a $4.7 million promissory note. The Chicago Blackhawks Hockey Team, an unusual entity in the crypto arena, also appeared on the creditor list with a disputed trade payable claim of approximately $1.3 million. The company’s creditor list reveals its deep connections and exposure to high-net-worth individuals and institutions across the world. 

Reliz Technology Group serves over 2,000 institutional clients, including professional traders, hedge funds, high-net-worth individuals, and large-scale Bitcoin mining operations. Throughout 2025, the lender facilitated an estimated $60 billion in trading volume. According to the court filings, the company attracted investment from prominent financial institutions and venture capital firms, including CME Ventures, which holds 2% of the company’s equity; K&H Crypto LLC, which owns 17% of the company; and Nexo Inc., which also owns 2% of the company’s equity in Reliz Technology Group. 

Blockfills halts client deposits and withdrawals

The lending firm had temporarily halted customer deposits and withdrawals on February 11. Cryptopolitan reported that the lending platform cited extreme market volatility as the reason for the transaction disruptions. Despite the firm’s reference to a “temporary suspension,” the publication noted that clients could still close and open spot and derivative positions. The company’s spokesperson explained that the disruption was part of the company’s initiatives to “further the protection of clients and the firm” from prevailing market conditions at the time.

The bankruptcy is the latest filing that joins a growing list of major corporate collapses in the industry. In the last few years, the industry has witnessed several companies file for bankruptcy protection, cease operations, and lay off staff. Major firms such as Celsius, Voyager Digital, BlockFi, and Genesis went under during the 2022 market crash.

The ongoing market meltdown began to gain steam after the massive liquidation event on October 10 last year. According to data from CoinGecko, the crypto market capitalization has significantly declined to $2.6 trillion from $4.3 trillion recorded in early October. The war in the Middle East also triggered a risk-off market sentiment, prompting investors to withdraw capital from risky assets like cryptocurrencies. Bitcoin has plummeted by a staggering 41.5% from its all-time high of $126,080 to $73,742 at the time of this publication.

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