Cryptocurrency trading and lending firm BlockFills files for Chapter 11 bankruptcy protection

Techub News reported, according to The Block, that cryptocurrency trading and lending company BlockFills has filed for Chapter 11 bankruptcy protection. The entity operating BlockFills, Reliz Ltd., submitted a voluntary bankruptcy petition to the U.S. Bankruptcy Court for the District of Delaware on Sunday, seeking reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing documents show that the company reported estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million. BlockFills stated that, after extensive discussions with investors, clients, and creditors, initiating the Chapter 11 bankruptcy process is "the most responsible path forward."

In February of this year, BlockFills temporarily suspended customer deposits and withdrawals, citing "recent market and financial conditions," while addressing liquidity shortages and negotiating with stakeholders. Earlier this month, a U.S. federal judge issued a temporary restraining order against BlockFills in a lawsuit filed by Dominion Capital, temporarily freezing certain assets related to the dispute.