Crypto lending platform BlockFills has filed for Chapter 11 bankruptcy protection in the United States after suspending customer deposits and withdrawals last month, signaling deep financial strain at the firm.
The filing was made Monday in a Delaware bankruptcy court by Reliz LTD, the operating company behind BlockFills, along with three affiliated entities. According to court documents, the companies reported assets estimated between $50 million and $100 million, while total liabilities could reach between $100 million and $500 million.
Following our previous communication regarding the temporary suspension of client deposits and withdrawals, BlockFills wishes to provide an important update.
After extensive discussions with investors, clients, creditors, and other stakeholders, BlockFills has determined that a…
— BlockFills (@blockfills) March 15, 2026
In a statement accompanying the filing, BlockFills said the restructuring process is intended to stabilize operations and preserve the value of the business while maximizing potential recoveries for clients, investors, and other stakeholders. The company added that the move follows extensive discussions with creditors and partners as it searches for new liquidity and possible strategic transactions.
Withdrawals halted amid market turmoil
Trouble for BlockFills became public last month when the platform abruptly suspended customer deposits and withdrawals. The firm said the decision was necessary to protect both the company and its users during a period of intense volatility in the digital asset market.
During that time, Bitcoin experienced a sharp drop, falling from above $97,000 in mid-January to below $64,000 by early February. The decline came after the cryptocurrency had already retreated from its October peak of more than $126,000, placing pressure on lending platforms that rely heavily on collateralized digital assets.
The liquidity crunch forced BlockFills to restrict account activity while it attempted to restore balance to the platform’s finances.
Lawsuit raises allegations of fund mismanagement
The company’s financial problems intensified earlier this month after a U.S. court temporarily froze 70.6 Bitcoin linked to BlockFills. The order followed a lawsuit from investment firm Dominion Capital, which accused the platform of misappropriating customer assets and commingling funds.
The situation mirrors the wave of crypto lender failures that swept through the industry in 2022 following the collapse of the Terra blockchain ecosystem. That crisis eventually brought down several major lending firms, including Celsius, Voyager Digital, BlockFi, and Genesis, and contributed to the downfall of crypto exchange FTX.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
