Crypto Lender BlockFills Files for Chapter 11 Bankruptcy in Delaware

BlockFills, a cryptocurrency lending and trading firm, has entered Chapter 11 bankruptcy protection following difficulties with managing its liquidity. As part of the filing, the company reported that it owes between $100 million and $500 million in debts, while its assets are valued at between $50 million and $100 million.

The move comes after BlockFills had temporarily suspended customer withdrawals earlier this year, citing a need to stabilize its operations. The company continued to allow trading activity for its institutional clients during this period, with over 2,000 hedge funds and asset managers generating more than $61 billion in trading volume on the platform last year.

The bankruptcy filing includes a list of 30 major unsecured creditors, ranging from crypto companies like Nexo Capital to financial institutions and even the Chicago Blackhawks hockey team. The largest creditor is 007 Capital LLC, with an unsecured claim of approximately $17 million. Some claims are listed as 'unliquidated,' indicating that their final amount may change during the bankruptcy process.