Reliz Technology Group Holdings Inc. and three affiliated entities — operating under the trade name "BlockFills" — filed for Chapter 11 bankruptcy protection on March 15, 2026 in the United States Bankruptcy Court for the District of Delaware (Case No. 26-10371 (TMH)). The Debtors report approximately $145 million in general unsecured obligations. The filing is supported by a pre-negotiated term sheet with an Ad Hoc Group of the company's largest customers that provides the framework for a reorganization plan centered on the creation of a new operating entity and a liquidating trust.
Company Background and Business Operations
BlockFills was founded in 2017 as a digital asset brokerage services company. The company focused solely on institutional, high-net-worth, and sophisticated customers and did not offer services to retail traders. Its suite of products included a proprietary trading platform, API connectivity, over-the-counter cryptocurrency trading, derivatives trading for eligible contract participants under the Commodity Exchange Act, collateralized lending, and cryptocurrency mining services.
The company utilized Fireblocks custody technology for digital asset management and maintained banking relationships with multiple domestic and international financial institutions for fiat settlement. BlockFills provided market access around the clock to a range of clients including hedge funds, broker-dealers, exchanges, crypto mining companies, and investment managers.
In May 2021, BlockFills raised approximately $7 million in a Pre-Series A equity round. In January 2022, the company closed a Series A round of approximately $36 million, proceeds from which were intended to be deployed into Bitcoin mining hardware. The Debtors' service address is 401 West Ontario St., Suite 400, Chicago, IL 60654.
The four Debtor entities are Reliz Technology Group Holdings Inc. (Delaware), Reliz Technologies LLC (Illinois), Reliz LTD (Cayman Islands), and Reliz CI LTD (Cayman Islands). The broader corporate structure includes numerous non-debtor subsidiaries spanning Brazil, Ireland, the United Kingdom, the UAE, Lithuania, Wyoming, and the Cayman Islands.
Events Leading to Bankruptcy
Loan Counterparty Defaults
From 2022 through 2025, BlockFills sustained losses from three failed lending relationships.
BlockFills provided net loans of 123 BTC, 500 ETH, and 5,000 USDC to one borrower, valued at approximately $8.5 million. That borrower filed for bankruptcy in Singapore on March 6, 2023 following exposure to other bankrupt counterparties, and the declaration states the loan would not be repaid.
BlockFills provided a separate 50 BTC loan to a bitcoin ATM company, valued at approximately $1 million at the time of the loan. The borrower defaulted on the obligation. BlockFills obtained a judgment of approximately $1.75 million, which remained unsatisfied as of the petition date. The declaration notes the value of the 50 BTC at the petition date was approximately $3.6 million.
BlockFills also participated in an equipment loan in partnership with a financing partner and equity shareholder to a cryptocurrency mining company backed by a multi-billion-dollar private equity firm. That borrower began missing required weekly payments in 2022 and subsequently filed for bankruptcy. Prior to filing, the borrower made approximately $3 million in payments to vendors and for director compensation, which the trustee for that bankruptcy is investigating for misappropriation. BlockFills settled a resulting dispute with its financing partner in late 2024 for approximately $12 million, weakening the company's balance sheet and liquidity.
Celsius Arbitration
BlockFills entered into a borrowing and lending arrangement with Celsius Network beginning in 2019, centered on a co-investment structure involving the Grayscale Ethereum Trust. A dispute over the settlement of that transaction led to arbitration in the United Kingdom. The four-day arbitration commenced on January 9, 2023. The arbitrator awarded Celsius the full amount of the initial ETH plus proceeds from the transaction, and the award was upheld on appeal in 2024. BlockFills subsequently negotiated a payment schedule through two promissory notes. The principal outstanding on those notes as of the petition date was approximately $4.8 million. The declaration states BlockFills had not made a payment on the notes since August 2025.
Mining Hardware Losses
Following the January 2022 Series A closing, BlockFills deployed capital into Bitcoin mining hardware intended to be placed at a third-party data site. The data site was not ready to operate when placement was intended, preventing BlockFills from activating its mining capabilities as planned. The declaration states BlockFills did not recoup its investment in the mining business line.
Crypto Market Crash and Withdrawal Suspension
On February 2, 2026, Bitcoin dropped below $80,000 for the first time since April 2025. BlockFills temporarily suspended certain deposit and withdrawal activity that day in response to liquidity pressure and customer withdrawal requests. On February 6, 2026, the company publicly announced a broader suspension of deposits and withdrawals, communicating with customers through written updates and video conferences.
Pre-Petition Litigation and Restraining Orders
In the weeks preceding the filing, two customer lawsuits were filed against certain Debtor entities and current or former directors and officers, alleging misappropriation of customer funds, conversion, breach of contract, and fraud-based claims. The first lawsuit was filed February 27, 2026 in the Southern District of New York. The second was filed March 5, 2026 in the Northern District of Illinois. The courts in both matters granted temporary restraining orders that restricted the Debtors' ability to conduct operations and exercise control over certain assets. The automatic stay afforded by Chapter 11 is intended to halt further litigation and prevent individual customers from pursuing assets outside the bankruptcy process.
Prepetition Restructuring Efforts
On July 23, 2025, BlockFills hired an Interim Chief Executive Officer. In August 2025, the company engaged Berkeley Research Group (BRG) to assist with restructuring and financial reporting, while also pursuing strategic alternatives, including a potential acquisition by a publicly traded cryptocurrency company. Those discussions commenced in September 2025 and included due diligence, in-person meetings, and negotiation of a go-forward business plan. The counterparty's board of directors declined to proceed in mid-November 2025.
Thereafter, BlockFills pursued a recapitalization with an existing investor combining new equity and debt financing. The parties made progress on the equity component in early January 2026, but feedback from potential debt providers indicated the debt component would be difficult to raise. The February 2026 withdrawal suspension materially altered the dynamics of those discussions, and the recapitalization was not completed.
From the period preceding the suspension through the petition date, BlockFills continued to evaluate alternatives with shareholders, advisors, and potential investors. The declaration states the board concluded that commencing Chapter 11 was the best available path to preserve value and pursue a court-supervised restructuring or sale process. On March 12, 2026, BlockFills formed a Special Committee comprised of a disinterested director, vested with authority to manage potential conflict matters, including investigating, releasing, or settling potential claims or causes of action.
Proposed Reorganization Plan
BlockFills has negotiated a term sheet with the Ad Hoc Group, which is comprised of the company's largest customers. The term sheet provides the framework for a Chapter 11 plan or a sale under Section 363 of the Bankruptcy Code. Certain terms remain subject to ongoing negotiation.
NewCo Structure
Under the term sheet, a newly formed entity (NewCo) will acquire certain assets of BlockFills, including current operating cash and digital assets, tangible assets, customer accounts and related data, the technology platform and intellectual property, brand assets, regulatory licenses to the extent transferable, and equity in certain affiliate entities. NewCo will not assume any pre-closing liabilities of BlockFills except as provided in definitive documentation. Participating customers will waive all claims against NewCo related to the business and conduct of BlockFills and its affiliates.
Customer Recoveries
Each customer with an allowed claim will receive a pro rata share of interests in a post-confirmation liquidating trust and a pro rata share of BlockFills' liquid assets. For the liquid portion, participating customers may elect to receive payment in digital assets and/or cash, full conversion into equity of NewCo, or a combination of the two.
Convenience Class
The term sheet proposes that customers with the lowest individual exposures to BlockFills — identified as approximately 807 customers — will constitute a Convenience Class and receive payments in cash or digital assets up to a proposed aggregate amount of $1,000,000. These figures appear in brackets in the term sheet, indicating they remain subject to ongoing negotiation. The Convenience Class is intended to reduce the administrative burden on the estates.
Liquidating Trust
Assets not transferred to NewCo — including estate causes of action not otherwise settled or released — will vest in a post-confirmation trust overseen by advisors selected by the Ad Hoc Group of BlockFills clients, for the pro rata benefit of customers.
New Money Investment
Until NewCo has raised $15 million in capital, participating customers may invest additional capital on a pro rata basis in exchange for equity at a valuation of the lower of $15 million or the amount raised. After that threshold is reached, existing customers may invest up to an additional $25 million at a valuation of up to $30 million.
Governance and Compliance
NewCo's initial board will consist of five to seven members, with representatives of participating customers comprising a majority. The board must include at least one independent member with recognized expertise in restructuring, financial services, or financial regulation. The board will appoint a Chief Compliance Officer responsible for anti-money laundering and know-your-customer functions. A management incentive plan is proposed with an incentive pool representing 10% to 15% of NewCo equity. All equity in NewCo shall be owned by no more than 500 entities, and all purchasers or recipients of equity must be accredited investors.
All customer funds held by NewCo will be maintained in segregated accounts separate from corporate funds. Customer assets may not be borrowed, pledged, hypothecated, or otherwise employed without the prior express written consent of those customers. All digital assets will be maintained with a qualified institutional custodian, and NewCo will implement daily reconciliation of customer balances and trading positions.
First Day Motions
The Debtors have filed or intend to file several first day motions seeking relief to facilitate administration of the Chapter 11 cases, including joint administration of the cases; appointment of Kurtzman Carson Consultants, LLC (d/b/a Verita Global) as claims and noticing agent; authorization to file a consolidated creditor matrix and redact certain personally identifiable information; authorization to serve certain parties by electronic mail and approve certain notice procedures; authority to pay certain prepetition taxes and fees; authorization to maintain existing insurance policies and pay related obligations; authorization for postpetition use of cash collateral with adequate protection to prepetition secured parties; and authorization to pay prepetition wages and employee benefit obligations. The Chief Restructuring Officer's declaration states that the first day relief requested is limited to matters requiring urgent action to preserve value during the pendency of the cases.
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