BlockFills, the crypto lending platform, has filed for Chapter 11 bankruptcy in Delaware. The move follows its suspension of customer deposits and withdrawals last month, citing deteriorating crypto market conditions.
Reliz LTD, the company’s operating entity, along with three affiliates, initiated the filing to restructure operations. The firm stated it pursued extensive discussions with investors, clients, and creditors, believing Chapter 11 provides the framework needed to stabilize the business, secure liquidity, and explore strategic alternatives.
The decision comes after Bitcoin fell from over $97,000 to below $64,000 between mid-January and early February, triggering widespread market stress.
The company emphasized its commitment to maximizing recoveries for stakeholders during the restructuring process.