Chicago Crypto Firm BlockFills Files for Chapter 11 Bankruptcy

BlockFills, a prominent player in the institutional crypto market, has entered Chapter 11 bankruptcy protection due to financial distress. The company's filing comes after weeks of turmoil, including suspending customer withdrawals and facing allegations of misusing client assets.

The bankruptcy petition was filed by Reliz Ltd., the operator behind BlockFills, in the U.S. Bankruptcy Court for the District of Delaware. The firm listed estimated assets between $50 million and $100 million and liabilities between $100 million and $500 million in court filings.