Another Crypto Lender Collapses: BlockFills Files for Bankruptcy After Suffering $75 Million Loss

Posted on by

TLDR

  • Chicago-based digital asset trading firm BlockFills initiated Chapter 11 bankruptcy proceedings in Delaware on March 15, 2026.
  • The company disclosed assets valued between $50 million and $100 million against liabilities ranging from $100 million to $500 million.
  • Following a $75 million loss, the firm halted client withdrawals in February.
  • A federal court order froze 70.6 Bitcoin associated with the company following a lawsuit filed by Dominion Capital.
  • CEO Nicholas Hammer has resigned, with Joseph Perry appointed as the interim chief executive.

BlockFills, an institutional-focused crypto trading and lending entity headquartered in Chicago, filed for Chapter 11 bankruptcy protection on March 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware.

The filing, submitted by the firm’s operating entity, Reliz Ltd., and three affiliated companies, reported assets in the $50 million to $100 million range and liabilities between $100 million and $500 million.

BlockFills provides liquidity, financing, and risk management solutions to institutional clients, including asset managers, hedge funds, and mining firms. The company reported a trading volume exceeding $60 billion in 2025, representing a 28% increase over the previous year.

The firm serves approximately 2,000 institutional clients and counts Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc. among its backers.

In February, BlockFills suspended all customer deposits and withdrawals, citing unfavorable market conditions. At the time, the company stated it required time to safeguard its operations and clients while attempting to recover liquidity.

According to CoinDesk, the firm had incurred losses of roughly $75 million and was actively searching for emergency capital or a potential buyer prior to the bankruptcy filing.

The significant decline in Bitcoin’s value likely contributed to the firm’s financial distress, as the cryptocurrency dropped from over $97,000 to below $64,000 between mid-January and early February 2026.

Legal Trouble Added Pressure

Earlier in March, a U.S. court ordered the freezing of 70.6 Bitcoin linked to BlockFills. This action followed a lawsuit from client Dominion Capital, which accused the firm of commingling funds and misappropriating customer assets.

Dominion alleged that BlockFills leadership had previously acknowledged a shortfall in their balance sheet and the mixing of client funds.

A federal judge also granted a temporary restraining order against BlockFills as part of the Dominion Capital litigation, mandating an accounting of all customer funds.

The Financial Times reported on March 6 that the firm had begun seeking legal and consulting guidance in preparation for a restructuring.

Leadership Change at BlockFills

Amid the ongoing crisis, co-founder and CEO Nicholas Hammer stepped down from his position, and Joseph Perry was appointed as interim CEO.

In an official statement, BlockFills characterized the Chapter 11 filing as the “most responsible path forward” following consultations with creditors, clients, and investors.

The company indicated that the restructuring process would provide the necessary time to stabilize operations, seek additional liquidity, and explore potential strategic transactions.

The collapse of BlockFills draws parallels to the 2022 crypto lending crisis, which saw firms such as Voyager Digital, Celsius, Genesis, and BlockFi file for bankruptcy following a severe market downturn.

Joseph Perry is currently leading the firm through the court-supervised restructuring.