BlockFills, a crypto lending platform, has filed for bankruptcy in the United States after suspending customer deposits and withdrawals last month.
Its operating company, Reliz LTD, along with three affiliated entities, filed for Chapter 11 bankruptcy in a Delaware court as part of a plan to restructure the business.
In a statement, BlockFills said the decision followed extensive discussions with investors, clients, creditors, and other stakeholders. The company added that the restructuring process aims to preserve the value of the business and maximize recoveries for stakeholders.
The firm noted that its team carefully explored various strategic and financial options before concluding that initiating a Chapter 11 process was the best path forward. According to the company, the move will provide the time and structure needed to stabilize operations, seek additional liquidity, and explore potential strategic transactions.
Last month, BlockFills halted customer deposits and withdrawals, saying the step was necessary to protect the company and its clients during a broader downturn in the crypto market. During that period, Bitcoin fell sharply from more than $97,000 in mid-January to below $64,000 in early February.
