After blocking withdrawals and deposits, BlockFills files for Chapter 11 bankruptcy
Crypto trading platform BlockFills has announced today that the company has entered Chapter 11 after ceasing trading amid market volatility.
The decision was made following extensive discussions with investors, customers, creditors and other stakeholders and is aimed at maintaining the value of the business and achieving higher profits, the company said.
Following our previous communication regarding the temporary suspension of customer deposits and withdrawals, Blockfills would like to make an important update.
After extensive discussions with investors, customers, lenders and other stakeholders, BlockFills a…
— BlockFills (@blockfills) March 15, 2026
On March 15, Block Phils' parent entity, Reliz Technology Group Holdings Inc. and three affiliates filed a voluntary Chapter 11 petition in United States Bankruptcy Court seeking joint administration for procedural purposes.
The company estimates its assets are between $50 million and $1 billion, it has debt between $100 million and $500 million, and it expects between 1,000 and 5,000 creditors.
Court records show the 30 largest unsecured claims total more than $119 million, most of which are classified as unsatisfied consumer claims.
The company's largest creditor, 007 Capital LLC of Puerto Rico, holds approximately $17 million in unsatisfied customer claims. Other major client claims include the Richard E. Ward Revocable Trust for $9.4 million and Arta Investment Partners LLC for $6.9 million.
The lender's list includes both institutional and retail participants in the global crypto market.
K&H Crypto LLC emerges as the largest disclosed shareholder, holding approximately 17% equity. Two unnamed shareholders each own 25%, whose identities remain confidential in court filings.
Institutional investors include Susquehanna Private Equity Investments LLLP with 5%, P3K LLC with 9% and CME Ventures, exchange operator CME Group with 2%.
In the year Blockfils, which had a turnover of more than $61 billion by 2025, was hit with massive losses and allegations of misappropriation of customer funds, and earlier this month announced plans to restructure.
Chicago's crypto lending and options platform serves approximately 2,000 institutional clients, including crypto hedge funds and asset managers.
Disclosure: This article was edited by Vivian Nguyen. See our Editorial Policy for more information on how we create and review content.
