Another Crypto Lender Goes Under: BlockFills Files for Bankruptcy After Losing $75 Million

TLDR

• Chicago-based crypto trading firm BlockFills filed for Chapter 11 bankruptcy in Delaware on March 15, 2026
• The firm reported assets of $50M–$100M against liabilities of $100M–$500M
• BlockFills suspended customer withdrawals in February after losing around $75 million
• A US court froze 70.6 Bitcoin tied to the firm following a lawsuit by client Dominion Capital
• CEO Nicholas Hammer stepped down; Joseph Perry is now interim CEO

BlockFills, a Chicago-based institutional crypto trading and lending firm, filed for Chapter 11 bankruptcy on March 15, 2026, in the US Bankruptcy Court for the District of Delaware.

The filing was made by Reliz Ltd., the firm’s operating company, along with three affiliated entities. It listed assets between $50 million and $100 million and liabilities between $100 million and $500 million.

BlockFills provides liquidity, financing, and risk-management services to institutional clients including hedge funds, asset managers, and mining companies. The firm says it processed more than $60 billion in trading volume in 2025, up 28% from the year before.

The company serves around 2,000 institutional clients and is backed by investors including Susquehanna Private Equity Investments, CME Ventures, and Nexo Inc.

BlockFills suspended customer deposits and withdrawals in February, citing deteriorating market conditions. The firm said it needed time to protect its business and clients while it worked to restore liquidity.

CoinDesk reported that BlockFills had lost around $75 million and had been seeking a buyer or emergency funding before the bankruptcy filing.

Bitcoin’s price drop likely played a role in the firm’s troubles. The cryptocurrency fell from over $97,000 to under $64,000 between mid-January and early February 2026.

Legal Trouble Added Pressure

Earlier in March, a US court froze 70.6 Bitcoin connected to BlockFills. The freeze came after client Dominion Capital sued the company, accusing it of misappropriating customer assets and commingling funds.

Dominion alleged that BlockFills executives had admitted on multiple occasions to having a balance sheet shortfall and mixing customer assets together.

A US federal judge also issued a temporary restraining order against BlockFills in the Dominion Capital lawsuit. The judge ordered an accounting of customer funds as part of the case.

The Financial Times reported on March 6 that BlockFills was preparing for a restructuring and had begun seeking legal and consulting advice.

Leadership Change at BlockFills

Co-founder and CEO Nicholas Hammer stepped down from his role amid the crisis. Joseph Perry was named interim CEO.

In its official statement, BlockFills said the Chapter 11 filing was the “most responsible path forward” after discussions with investors, clients, and creditors.

The company said the process would give it time to stabilize, pursue additional liquidity, and explore potential strategic transactions.

BlockFills’ collapse draws comparisons to the 2022 crypto lending crisis, when firms like Celsius, Voyager Digital, BlockFi, and Genesis all filed for bankruptcy following a sharp market downturn.

Joseph Perry is now leading the firm as it moves through the court-supervised restructuring process.

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