Crypto lending firm BlockFills declares Chapter 11 bankruptcy amid market turmoil
Following last month's suspension of customer transactions, BlockFills has officially filed for Chapter 11 bankruptcy protection in the United States, blaming adverse cryptocurrency market conditions.
Digital asset lending service BlockFills has initiated bankruptcy proceedings in the United States following its decision to freeze customer deposits and withdrawals approximately one month ago.
The company's operating entity, Reliz LTD, together with three additional affiliated entities, submitted Chapter 11 bankruptcy petitions to a Delaware bankruptcy court as part of an effort to reorganize the business.
In an official statement, BlockFills explained that the decision to pursue bankruptcy protection came following "extensive discussions with investors, clients, creditors, and other stakeholders," with the restructuring plan designed to "preserve the value of the business and maximize recoveries for stakeholders."
The BlockFills team has worked diligently to pursue and evaluate all available strategic and financial alternatives and believes initiating a chapter 11 process, with the intention of consummating a consensual restructuring with our clients and creditors, will provide the necessary time and structure to stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions.
Approximately one month ago, BlockFills froze customer deposits and withdrawals, stating the necessity to safeguard its operations and client interests during a widespread cryptocurrency market decline that witnessed Bitcoin (BTC) plunge from above $97,000 to below $64,000 throughout the period spanning mid-January to early February.
This is a developing story, and further information will be added as it becomes available.