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Every state-changing event for BlockFills: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions carry three independent witnesses — the original source, an Internet Archive snapshot taken at submission time, and a Solana memo signed by our publicly-disclosed publisher key.

1. #1publishby system:backfill

   2026-05-22 15:41:00Z
   Score: ? → ? (no score change)
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   chain

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   {"actor":"system:backfill","investigation_id":"be224e2d-c06c-4fd6-9d90-039826d93616","kind":"publish","page_slug":"blockfills","published_at":"2026-05-22T15:41:00.299Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"BlockFills","sections":[{"content":"BlockFills was founded in 2018 by Nicholas Hammer and Gordon Wallace as a digital asset brokerage and trading technology firm headquartered in Chicago, Illinois. The company provided institutional clients with crypto lending, liquidity provision, derivatives trading, and over-the-counter (OTC) execution services. By 2025, BlockFills reported serving approximately 2,000 institutional clients — including hedge funds, asset managers, and mining companies — across more than 95 countries. The firm processed $61.1 billion in transaction volume during 2025, representing a 28% increase over 2024. The operating entity was structured under Reliz Ltd. and the parent holding company Reliz Technology Group Holdings, Inc. The firm maintained offices in Chicago, Austin, the New York/New Jersey area, London, Dubai, Sao Paulo, and the Cayman Islands. In January 2022, BlockFills closed a $37 million Series A funding round led by Susquehanna Private Equity Investments, with co-investors including CME Ventures, Simplex Ventures, C6 Ventures, and Nexo Inc., bringing total capital raised to approximately $44 million.","heading":"Company Background","severity":"low","sources":[{"credibility":2,"name":"Trading Technology Provider BlockFills Raises $37M for Expansion — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2022/01/20/trading-technology-provider-blockfills-raises-37m-for-expansion"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"},{"credibility":2,"name":"Crypto M&A: Susquehanna-backed Blockfills seek sale after millions in lending losses — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/19/susquehanna-backed-blockfills-up-for-sale-after-usd75-million-lending-loss"}]},{"content":"BlockFills accumulated substantial losses across multiple years from a combination of counterparty defaults, a failed mining venture, and adverse arbitration obligations. The firm deployed a significant portion of its 2022 Series A proceeds into cryptocurrency mining hardware; the mining venture suffered an estimated $30 million loss after its partnered data site failed to activate on schedule. BlockFills also sustained an $8.5 million impairment from the Babel Finance bankruptcy (Babel filed for bankruptcy in Singapore in March 2023), after BlockFills concluded the loaned assets would not be repaid. A separate equipment loan extended in partnership with equity shareholder Nexo Capital Inc. to mining company AEXA Digital Infrastructure — backed by private equity firm RedBird Capital Partners — resulted in a $12 million settlement paid by BlockFills in late 2024, materially weakening its balance sheet. Additionally, BlockFills held obligations arising from a 2019 co-investment arrangement with Celsius Network involving a Digital Asset Lending Agreement collateralized by U.S. dollars. The March 2023 failures of Silvergate Bank and Signature Bank further disrupted the firm's payment infrastructure. By end of 2025, the combined shortfall was estimated internally at approximately $77 million. Court filings also disclosed that BlockFills paid $12 million in employee bonuses in 2024 against only $900,000 in adjusted profits, a governance decision that drew scrutiny in bankruptcy proceedings.","heading":"Cumulative Financial Losses and Counterparty Defaults","severity":"high","sources":[{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"},{"credibility":2,"name":"BlockFills Files Chapter 11 With Up to $500M Liabilities After Liquidity Crunch — CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/03/16/blockfills-files-chapter-11-with-up-to-500m-liabilities-after-liquidity-crunch/"},{"credibility":2,"name":"From $61B Volume to Chapter 11: BlockFills Falls Amid Ongoing Crypto Downturn — Disruption Banking","type":"news_article","url":"https://www.disruptionbanking.com/2026/03/16/from-61b-volume-to-chapter-11-blockfills-falls-amid-ongoing-crypto-downturn/"}]},{"content":"Two civil lawsuits filed in late February and early March 2026 alleged that BlockFills misappropriated and unlawfully retained customer cryptocurrency assets by commingling them with company funds on a single balance sheet. Dominion Capital LLC — a New York-based private investment firm — filed a complaint on February 27, 2026, in the U.S. District Court for the Southern District of New York (Dominion Capital LLC v. Reliz Ltd.), alleging that BlockFills misappropriated and unlawfully retained millions of dollars' worth of customer crypto assets, commingled client funds, and concealed heavy losses. Dominion alleged that BlockFills used pooled customer assets to cover its own operating costs, including cryptocurrency mining operations, hardware purchases, and settlements with other firms since at least 2025. Dominion further alleged that BlockFills admitted during client calls in early February 2026 that customer assets had been pooled with company funds on a single balance sheet. A second lawsuit — 1548199 Alberta Ltd. and Robert J. Bertram v. Reliz Technology Group Holdings Inc. et al. (Case No. 1:26-cv-02451, N.D. Ill., filed March 5, 2026) — asserted similar claims and named as defendants Interim CEO Joseph Perry, former CEO Nicholas Hammer, and President Gordon Wallace personally. At BlockFills' first-day bankruptcy hearing, debtors' counsel conceded that 'customer funds have always been commingled with company funds,' while disputing the legal classification of those funds.","heading":"Alleged Misappropriation and Commingling of Customer Assets","severity":"critical","sources":[{"credibility":2,"name":"U.S. judge freezes BlockFills assets in dispute over 70 bitcoin with creditor Dominion Capital — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/03/05/u-s-judge-freezes-blockfills-assets-in-dispute-over-70-bitcoin-with-creditor-dominion-capital"},{"credibility":1,"name":"Dominion Capital LLC v. BlockFills: Complaint ('Crypto Misappropriation') — OffshoreAlert","type":"court_filing","url":"https://www.offshorealert.com/dominion-capital-llc-v-reliz-ltd-complaint-crypto-misappropriation/"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"},{"credibility":2,"name":"Judge Freezes 70 BTC from BlockFills in Court Dispute Tied to User Funds — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/blockfills-bitcoin-freeze-order-dominion-capital-customer-fund-dispute"}]},{"content":"On March 3, 2026, U.S. District Judge Mary Kay Vyskocil of the Southern District of New York issued an ex parte temporary restraining order (TRO) against BlockFills in the Dominion Capital action. The TRO froze 70.56 BTC (approximately $4.8 million at the time) allegedly belonging to Dominion Capital, barred BlockFills from moving assets outside the United States, and ordered the firm to account for and segregate customer funds. The court issued the TRO without prior notice to BlockFills, citing a risk of 'immediate and irreparable injury' given that the firm had suspended client withdrawals and insolvency appeared imminent. The TRO was set to expire on March 17, 2026, unless extended. BlockFills' Chapter 11 filing on March 15, 2026, triggered an automatic stay that superseded the civil court proceedings. A TRO was also granted in the Northern District of Illinois action brought by 1548199 Alberta Ltd. and Robert J. Bertram.","heading":"Court Orders and Asset Freeze","severity":"critical","sources":[{"credibility":2,"name":"U.S. judge freezes BlockFills assets in dispute over 70 bitcoin with creditor Dominion Capital — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/03/05/u-s-judge-freezes-blockfills-assets-in-dispute-over-70-bitcoin-with-creditor-dominion-capital"},{"credibility":2,"name":"BlockFills Entities File Bankruptcy After Withdrawals Halted, Court Froze Bitcoin — Decrypt","type":"news_article","url":"https://decrypt.co/361195/blockfills-bankruptcy-withdrawals-halted-court-froze-bitcoin"},{"credibility":2,"name":"New York court freezes 71 BTC in BlockFills case — TradersUnion","type":"news_article","url":"https://tradersunion.com/news/cryptocurrency-news/show/1636320-u-s-court-freezes-71-btc-in-blockfills-case/"}]},{"content":"Co-founder and CEO Nicholas Hammer stepped down from his position in late July 2025, prior to the public withdrawal suspension. Joseph Perry, who had served on the company's board since 2019 and co-founded trading systems firm Harmonic Solutions, was appointed Interim CEO. CFO Amy Shelly resigned in January 2026. The company engaged Berkeley Research Group (BRG) as a financial restructuring advisor, with BRG Managing Director Mark Renzi appointed as Chief Restructuring Officer. The Alberta lawsuit named Perry, Hammer, and President Gordon Wallace personally as defendants.","heading":"Leadership Changes","severity":"high","sources":[{"credibility":2,"name":"Blockfills co-founder and CEO Nicholas Hammer has stepped down — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/25/blockfills-co-founder-and-ceo-nicholas-hammer-has-stepped-down-amid-usd75-million-lending-losses"},{"credibility":3,"name":"BlockFills CEO Resigns During $75M Lending Crisis Shakeup — CoinGenius","type":"news_article","url":"https://coingenius.news/blockfills-ceo-resigns-during-75m-lending-crisis-shakeup/"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"}]},{"content":"On March 15, 2026, Reliz Technology Group Holdings, Inc. and three affiliated entities filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. Court filings disclosed assets of $50 million to $100 million against liabilities of $100 million to $500 million, with approximately $145 million in general unsecured obligations. Top unsecured creditors included Celsius Network (approximately $4.8 million outstanding principal on promissory notes, with Celsius asserting 37% default interest), Nexo/AEXA ($12 million settlement paid in 2024), and Babel Finance ($8.5 million in defaulted loans). The company was advised in the bankruptcy by McDermott Will & Schulte LLP and Katten Muchin Rosenman LLP as bankruptcy counsel, Berkeley Research Group as financial advisor, and Verita Global LLC as claims agent. The company had approximately $30 million in cash collateral available at filing.","heading":"Chapter 11 Bankruptcy Filing","severity":"critical","sources":[{"credibility":1,"name":"BlockFills Files for Chapter 11 Bankruptcy After Crypto Market Turmoil — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2026-03-16/crypto-trading-firm-blockfills-files-for-chapter-11-in-delaware"},{"credibility":2,"name":"Crypto financial firm BlockFills files for Chapter 11 bankruptcy — Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/news/crypto-financial-firm-blockfills-files-212039784.html"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"},{"credibility":2,"name":"BlockFills' Statement on Important Company Updates and Chapter 11 Bankruptcy Filing — BlockFills Official","type":"official","url":"https://www.blockfills.com/2026/03/15/blockfills-statement-on-important-company-updates-and-chapter-11-bankruptcy-filing/"}]},{"content":"BlockFills' Chapter 11 filing was supported by a pre-negotiated term sheet with an Ad Hoc Group of the company's largest customers (representing approximately $75 million in exposure). The proposed plan features a dual-track toggle mechanism: a customer-led NewCo transaction or an alternative Section 363 competitive sale process. Under the NewCo structure, a new operating entity would acquire liquid assets, the technology platform, intellectual property, licenses, and customer accounts. Participating customers would receive pro rata trust interests and liquid asset distributions. A convenience class of approximately 807 small creditors would receive up to $1 million in aggregate. The NewCo governance structure would include a 5 to 7 member board with a customer-representative majority, with requirements for segregated banking, qualified custody, daily reconciliation, and accredited-investor status. The proposed timeline called for bid procedures approval in April 2026, an auction in May 2026, and a confirmation hearing on June 22, 2026.","heading":"Proposed Reorganization Plan","severity":"medium","sources":[{"credibility":2,"name":"BlockFills Parent Files Chapter 11 in Delaware, Proposes Customer-Led Reorganization into NewCo — Chapter11Cases","type":"news_article","url":"https://chapter11cases.com/blogs/news/blockfills-parent-files-chapter-11-in-delaware-proposes-customer-led-reorganization-into-newco"},{"credibility":2,"name":"BlockFills Crypto Brokerage Pursues Dual-Track Restructuring in Delaware — Stretto/Chapter11Cases","type":"news_article","url":"https://chapter11cases.com/blogs/news/blockfills-crypto-brokerage-pursues-dual-track-restructuring-in-delaware"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"}]}],"sources_used":[{"credibility":1,"name":"BlockFills Files for Chapter 11 Bankruptcy After Crypto Market Turmoil — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2026-03-16/crypto-trading-firm-blockfills-files-for-chapter-11-in-delaware"},{"credibility":2,"name":"U.S. judge freezes BlockFills assets in dispute over 70 bitcoin with creditor Dominion Capital — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/03/05/u-s-judge-freezes-blockfills-assets-in-dispute-over-70-bitcoin-with-creditor-dominion-capital"},{"credibility":2,"name":"Crypto trading firm BlockFills files for bankruptcy — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/03/11/crypto-trading-firm-blockfills-has-filed-for-bankruptcy"},{"credibility":2,"name":"Crypto M&A: Susquehanna-backed Blockfills seek sale after millions in lending losses — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/19/susquehanna-backed-blockfills-up-for-sale-after-usd75-million-lending-loss"},{"credibility":2,"name":"Blockfills co-founder and CEO Nicholas Hammer has stepped down — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/25/blockfills-co-founder-and-ceo-nicholas-hammer-has-stepped-down-amid-usd75-million-lending-losses"},{"credibility":1,"name":"Dominion Capital LLC v. BlockFills: Complaint ('Crypto Misappropriation') — OffshoreAlert","type":"court_filing","url":"https://www.offshorealert.com/dominion-capital-llc-v-reliz-ltd-complaint-crypto-misappropriation/"},{"credibility":2,"name":"BlockFills Chapter 11 Case Summary — Bondoro","type":"other","url":"https://bondoro.com/blockfills/"},{"credibility":2,"name":"Trading Technology Provider BlockFills Raises $37M for Expansion — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2022/01/20/trading-technology-provider-blockfills-raises-37m-for-expansion"},{"credibility":2,"name":"BlockFills Parent Files Chapter 11 in Delaware, Proposes Customer-Led Reorganization into NewCo — Chapter11Cases","type":"news_article","url":"https://chapter11cases.com/blogs/news/blockfills-parent-files-chapter-11-in-delaware-proposes-customer-led-reorganization-into-newco"},{"credibility":2,"name":"BlockFills Crypto Brokerage Pursues Dual-Track Restructuring in Delaware — Chapter11Cases/Stretto","type":"news_article","url":"https://chapter11cases.com/blogs/news/blockfills-crypto-brokerage-pursues-dual-track-restructuring-in-delaware"},{"credibility":2,"name":"BlockFills' Statement on Chapter 11 Bankruptcy Filing — BlockFills Official","type":"official","url":"https://www.blockfills.com/2026/03/15/blockfills-statement-on-important-company-updates-and-chapter-11-bankruptcy-filing/"},{"credibility":2,"name":"BlockFills Files Chapter 11 With Up to $500M Liabilities After Liquidity Crunch — CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/03/16/blockfills-files-chapter-11-with-up-to-500m-liabilities-after-liquidity-crunch/"},{"credibility":2,"name":"Judge Freezes 70 BTC from BlockFills in Court Dispute Tied to User Funds — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/blockfills-bitcoin-freeze-order-dominion-capital-customer-fund-dispute"},{"credibility":2,"name":"BlockFills Entities File Bankruptcy After Withdrawals Halted, Court Froze Bitcoin — Decrypt","type":"news_article","url":"https://decrypt.co/361195/blockfills-bankruptcy-withdrawals-halted-court-froze-bitcoin"},{"credibility":2,"name":"From $61B Volume to Chapter 11: BlockFills Falls Amid Ongoing Crypto Downturn — Disruption Banking","type":"news_article","url":"https://www.disruptionbanking.com/2026/03/16/from-61b-volume-to-chapter-11-blockfills-falls-amid-ongoing-crypto-downturn/"},{"credibility":2,"name":"Crypto Lender BlockFills Considers Restructuring Amid Withdrawal Freeze And Client Lawsuit — Crowdfund Insider","type":"news_article","url":"https://www.crowdfundinsider.com/2026/03/265453-crypto-lender-blockfills-considers-restructuring-amid-withdrawal-freeze-and-client-lawsuit/"},{"credibility":1,"name":"BlockFills Closes $37 Million Series A Funding Round — BusinessWire","type":"official","url":"https://www.businesswire.com/news/home/20220119005733/en/BlockFills-Closes-%2437-Million-Series-A-Funding-Round-to-Continue-Global-Expansion-and-Scale-Existing-Core-Verticals"}],"summary":"BlockFills (operated by Reliz Technology Group Holdings, Inc.) was a Chicago-based institutional cryptocurrency trading and lending firm that processed $61.1 billion in volume in 2025 before filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on March 15, 2026. The firm suspended client withdrawals and deposits on February 11, 2026, amid approximately $75 million in accumulated lending losses, and subsequently faced two civil lawsuits alleging misappropriation of customer assets and commingling of client funds with company funds. At the time of filing, BlockFills reported assets of $50 million to $100 million against liabilities of $100 million to $500 million, with approximately $145 million in general unsecured obligations.","timeline":[{"date":"2018-01-01","event":"BlockFills founded by Nicholas Hammer and Gordon Wallace in Chicago as a digital asset trading and brokerage firm.","source":"Bondoro Case Summary / CoinDesk","source_url":"https://bondoro.com/blockfills/"},{"date":"2022-01-19","event":"BlockFills closes $37 million Series A round led by Susquehanna Private Equity Investments, CME Ventures, Simplex Ventures, C6 Ventures, and Nexo Inc., bringing total funding to approximately $44 million.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2022/01/20/trading-technology-provider-blockfills-raises-37m-for-expansion"},{"date":"2022-01-01","event":"BlockFills deploys a substantial portion of Series A proceeds into cryptocurrency mining hardware; the venture subsequently suffers approximately $30 million in losses after a partnered data site fails to operate on schedule.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2023-03-01","event":"Babel Finance files for bankruptcy in Singapore; BlockFills records an $8.5 million impairment on loaned assets that it concludes will not be repaid.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2023-03-01","event":"Failures of Silvergate Bank and Signature Bank disrupt BlockFills' payment rails and banking infrastructure.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2024-01-01","event":"BlockFills pays approximately $12 million to settle a dispute with Nexo Capital arising from the AEXA Digital Infrastructure equipment loan, materially weakening the firm's balance sheet. BlockFills also pays $12 million in employee bonuses against only $900,000 in adjusted profits.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2025-07-23","event":"Co-founder and CEO Nicholas Hammer steps down; Joseph Perry appointed Interim CEO.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/02/25/blockfills-co-founder-and-ceo-nicholas-hammer-has-stepped-down-amid-usd75-million-lending-losses"},{"date":"2025-11-01","event":"A planned acquisition process for BlockFills collapses.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2026-01-01","event":"CFO Amy Shelly resigns from BlockFills.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2026-02-02","event":"BlockFills privately suspends client withdrawals amid liquidity pressure.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2026-02-06","event":"BlockFills publicly announces suspension of client deposits and withdrawals.","source":"CoinDesk / Bondoro","source_url":"https://bondoro.com/blockfills/"},{"date":"2026-02-19","event":"Reports emerge that Susquehanna-backed BlockFills is seeking a buyer following approximately $75 million in lending losses.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/02/19/susquehanna-backed-blockfills-up-for-sale-after-usd75-million-lending-loss"},{"date":"2026-02-27","event":"Dominion Capital LLC files complaint in the U.S. District Court for the Southern District of New York alleging misappropriation and commingling of customer cryptocurrency assets.","source":"CoinDesk / OffshoreAlert","source_url":"https://www.coindesk.com/business/2026/03/05/u-s-judge-freezes-blockfills-assets-in-dispute-over-70-bitcoin-with-creditor-dominion-capital"},{"date":"2026-03-03","event":"U.S. District Judge Mary Kay Vyskocil (S.D.N.Y.) issues ex parte temporary restraining order freezing 70.56 BTC (~$4.8 million), barring BlockFills from moving assets outside the United States, and ordering an accounting and segregation of customer funds.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/03/05/u-s-judge-freezes-blockfills-assets-in-dispute-over-70-bitcoin-with-creditor-dominion-capital"},{"date":"2026-03-05","event":"1548199 Alberta Ltd. and Robert J. Bertram file a second civil lawsuit in the Northern District of Illinois (Case No. 1:26-cv-02451) alleging misappropriation; a TRO is also granted in this action.","source":"Bondoro Case Summary","source_url":"https://bondoro.com/blockfills/"},{"date":"2026-03-15","event":"Reliz Technology Group Holdings, Inc. and three affiliated entities file voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware, listing assets of $50M-$100M and liabilities of $100M-$500M.","source":"Bloomberg / Yahoo Finance","source_url":"https://www.bloomberg.com/news/articles/2026-03-16/crypto-trading-firm-blockfills-files-for-chapter-11-in-delaware"}]},"v":1}

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