BlockFills operator Reliz Ltd. filed for Chapter 11 bankruptcy in Delaware alongside three affiliated entities. The filing follows a February lawsuit by creditor Dominion Capital and a federal court order freezing 70.5 BTC-valued at $4.8 million-tied to client funds.
Dominion Capital alleges BlockFills commingled customer crypto with corporate assets, concealed losses, and admitted during client calls that pooled funds created a $77 million shortfall as of year-end 2025. The firm reportedly used client assets to cover mining expenses, equipment purchases, and settlements with other crypto firms.
Legal experts compare the case to FTX’s collapse-though smaller in scale-highlighting risks when institutional crypto venues operate without mandatory segregation of client assets. Courts now face unresolved questions: whether BlockFills clients hold priority claims or rank as unsecured creditors, and how open trades and collateral will be treated under bankruptcy’s automatic stay.