The cryptocurrency lending platform BlockFills has recently filed for bankruptcy in the United States, having previously suspended customer deposits and withdrawals last month.
BlockFills' operating company Reliz LTD, along with three affiliated companies, filed for Chapter 11 bankruptcy protection on Sunday (specific date not disclosed) in a Delaware bankruptcy court, aiming to restructure the company.
According to the bankruptcy filing, BlockFills estimates its assets to be between $50 million and $100 million, while its liabilities are estimated to be between $100 million and $500 million.
The company stated that it has evaluated “all viable strategic and financial alternatives” and believes that bankruptcy restructuring “will provide the necessary time and structure to stabilize the business, seek additional liquidity and restore sources, as well as explore potential strategic transactions.”
BlockFills did not immediately respond to requests for comment.
Previously, BlockFills had imposed restrictions on customers in February. It was reported that Dominion indicated BlockFills executives had repeatedly “acknowledged the commingling of customer assets and a shortfall in the balance sheet.”
The bankruptcy filing of BlockFills echoes the events of 2022 when several crypto lending companies collapsed under similar circumstances. At that time, the collapse of the Terra chain triggered a downturn in the crypto market, leading to the bankruptcy of several crypto lending companies, including Celsius, Voyager Digital, BlockFi, and Genesis, ultimately culminating in the collapse of the crypto exchange FTX.