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Blockfills, a Susquehanna-backed crypto lending and trading platform for institutional clients with over $10M in digital assets, filed a voluntary petition for Chapter 11 bankruptcy over the weekend.
What's the Scoop?
- Exchange Insolvency: On Sunday, BlockFills operator Reliz Ltd. filed a voluntary Chapter 11 restructuring petition in the U.S. Bankruptcy Court for the District of Delaware. The exchange is insolvent at this time, with its petition estimating between $50M to $100M in assets against $100M to $500M in liabilities.
- Best Outcome: According to a Blockfills statement, "voluntary chapter 11 [bankruptcy] is the most responsible path forward in order to preserve the value of the business and maximize recoveries for stakeholders. This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process."
- Sale Ambitions: In mid-February, Blockfills was reported as seeking a buyer after incurring losses around $75M. Prior to its attempted sale, Blockfills released a public statement, confirming that it had decided to "temporarily" suspend clients and withdrawals.
BlockFills’ Statement on Important Company Updates and Chapter 11 Bankruptcy Filing - BlockFills
Following our previous communication regarding the temporary suspension of client deposits and withdrawals, BlockFills wishes to provide an important update. After extensive discussions with investors, clients, creditors, and other stakeholders, BlockFills has determined that a voluntary chapter 11 filing is the most responsible path forward in order to preserve the value of the business and maximize recoveries for stakeholders. This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process. To that end,…
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