Crypto Credit Crisis Deepens As BlockFills Files For Bankruptcy
Crypto lender BlockFills and three related entities under parent firm Reliz LTD have filed for Chapter 11 bankruptcy protection. The filing comes after the company halted customer withdrawals last month, citing a sharp Bitcoin selloff as the reason. Prior to the bankruptcy, a Delaware court had already ordered 71 Bitcoin frozen due to a customer fund dispute.
Chapter 11 allows the company to continue operating while it restructures its finances and negotiates a repayment plan with creditors. Customers with balances on the platform are considered unsecured creditors, meaning they will be last in line for repayment. The amount and timing of any recovery depend on the company's assets and may take months or years to resolve.
This situation mirrors previous crypto lending failures, such as Celsius and Voyager, where customers faced long waits for partial repayments. BlockFills has not disclosed its total liabilities or the number of affected customers.
bitcoinist2 gün önce 13:32
