BlockFills collapse — what creditors were owed and recovered (2026)

BlockFills was a Chicago-based institutional crypto brokerage, liquidity provider and lender operated by Reliz Ltd. In February 2026, amid rising client redemptions during a broad crypto downturn, it suspended deposits and withdrawals on 11 February. It later told clients that lending, trading and mining activity had left a balance sheet shortfall of about US$77 million as of the end of 2025, with reported losses in the US$75 million to US$80 million range.

Reliz Ltd. and three affiliated entities filed voluntary Chapter 11 petitions in the District of Delaware on 15 March 2026, case number 26-10371 (TMH), proposing a customer-led reorganisation into a new entity. The petition listed estimated assets of US$50 million to US$100 million against estimated liabilities of US$100 million to US$500 million; that band covers all liabilities, not only client claims.

Dominion Capital alleged in litigation that BlockFills misappropriated and commingled customer crypto assets, concealed losses and refused to return funds after suspending withdrawals, and obtained an order freezing bitcoin. Those are allegations in a civil suit and have not been adjudicated. No criminal charges have been reported.

A Delaware bankruptcy judge approved the sale of the trading business, customer relationships and intellectual property to Belgian firm Keyrock for US$3.25 million on 16 June 2026. Judge Thomas M. Horan confirmed the Chapter 11 plan on 13 July 2026, 122 days after the petition, a faster confirmation than BlockFi, Celsius or FTX achieved. The plan carries a dual-track toggle: either a customer-led reorganisation into a new entity, in which customers contribute their distributions back as equity and the board sits under a customer majority, or a liquidation through a competitive sale. About 807 customers with claims under US$45,000 instead share a convenience-class pool of US$850,000.

The figure recorded here is the roughly US$145 million of general unsecured obligations, almost all of it customer claims; the five largest are institutional accounts running from US$17.1 million down to US$5.7 million. The US$77 million the debtors described is the balance-sheet deficit, which measures the hole rather than what was owed, and this registry records claims. Two of the losses behind that deficit lead to other entries here: about US$8.5 million on a defaulted loan to Babel Finance, and Celsius Network holding roughly US$4.8 million of secured debt against the estate. No distribution has been made.