BlockFills, a Chicago-based crypto options and lending platform backed by Susquehanna, is preparing for corporate restructuring following substantial financial losses and a customer lawsuit.
The firm is reportedly engaged with consulting group BRG and law firm Katten Muchin Rosenman for advisory services.
BlockFills froze client withdrawals last month after incurring loan losses and unsuccessful crypto mining bets. The company has also admitted to inaccuracies in its financial reporting.
A Manhattan federal judge issued a temporary restraining order against BlockFills after Dominion Capital filed a lawsuit alleging improper handling and commingling of customer funds. Court filings indicate that BlockFills executives acknowledged customer assets were held together on a single balance sheet.
The lawsuit further alleges these funds were used to cover operating expenses, crypto mining losses, and unsecured loans.
BlockFills stated it is actively exploring options to stabilize the company and has appointed BRG executive Mark Renzi as chief transformation officer to lead a restructuring plan potentially involving new capital and enhanced financial controls.
Financial issues stem from losses in trading, lending, and crypto mining, exacerbated by poor bookkeeping, resulting in a reported balance sheet deficit of approximately $80 million. The company also reported losses of roughly $23 million from lending exposure to bankrupt entities Babel Finance and Aexa Digital Finance, while also navigating obligations related to the bankruptcies of FTX and Celsius.
Founded in 2018, BlockFills processed approximately $60 billion in trading volume in 2025.