BY Richard Summerfield
Chicago-based crypto trading firm BlockFills has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware as it seeks to restructure its business and stabilise operations.
According to court filings, the company has assets between $50m and $1bn and liabilities ranging from $100m to $500m. Court documents show that BlockFills expects between 1000 and 5000 creditors as part of the bankruptcy proceedings. Meanwhile, the 30 largest unsecured claims exceed $119m, with most classified as unliquidated customer claims.
The largest creditor listed in the filings is 007 Capital LLC, which holds a claim of about $17m. Other major claims include the Richard E Ward Revocable Trust with $9.4m and Artha Investment Partners LLC with $6.9m. The creditor list includes both institutional investors and retail participants from the global crypto market.
On Sunday, the company issued a statement noting that filing for Chapter 11 was the most responsible step after discussions with investors, clients and creditors.
According to BlockFills, the court-supervised process will allow it to restructure its operations, stabilise the business and explore new sources of liquidity while continuing to engage with stakeholders. The filing was “the most responsible path forward” following extensive discussions with investors, clients and creditors.
“This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process,” the company said. It added that the move was intended to “stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions”, while maintaining that protecting client interests “remains a priority”.
BlockFills’ Chapter 11 filing comes against a backdrop of worsening legal pressures. Earlier in March, a US federal judge issued a temporary restraining order against BlockFills in a lawsuit brought by Dominion Capital, temporarily freezing certain assets tied to the dispute.
According to a 27 February court filing, Dominion accused BlockFills of misappropriating customer assets and refusing to return millions of dollars’ worth of cryptoassets that Dominion had stored on the BlockFills platform. According to Dominion, BlockFills had a balance sheet shortfall of roughly $77m by the end of 2025. Dominion alleged that BlockFills used those pooled assets to cover its own operating costs, including crypto mining operations, equipment purchases and settlements with other firms.
In light of its financial challenges, BlockFills suspended customer deposits and withdrawals on 11 February. The company has been dealing with financial pressure and legal issues tied to alleged asset misappropriation involving Dominion Capital. As a result, the company announced it was temporarily suspending client deposits and withdrawals “in light of recent market and financial conditions, and to further the protection of clients and the firm”.
According to BlockFills’ 2025 review, it processed over $61bn in transaction volume in 2025, up 28 percent from the previous year, and served over 20,000 institutional clients, including hedge funds and asset managers, across more than 95 countries.
News: Crypto Selloff Sends Trading Platform BlockFills To Ch. 11es/2453372/crypto-selloff-sends-trading-platform-blockfills-to-ch-11