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BlockFills Files for Chapter 11 in Delaware After Halting Client Withdrawals

A court‑reported asset gap leaves customer recoveries uncertain, with a bitcoin freeze in a client dispute still in place.

Overview

  • Reliz Ltd., BlockFills’ operator, and three affiliates sought Chapter 11 protection on Mar. 15 in the U.S. Bankruptcy Court for the District of Delaware.
  • Court papers list assets of $50 million to $100 million against $100 million to $500 million in liabilities, with the 30 largest unsecured claims topping $119 million and many marked as unliquidated customer claims.
  • A New York federal judge issued a temporary restraining order freezing about 70.6 BTC in the Dominion Capital dispute and directed an accounting and segregation of customer funds.
  • Dominion alleges BlockFills commingled and misappropriated client assets and points to a roughly $77 million shortfall, after the firm suspended deposits and withdrawals on Feb. 11.
  • Co‑founder Nicholas Hammer stepped down as CEO and Joseph Perry is interim chief as the automatic stay pauses creditor actions and the company pursues restructuring and liquidity options.