Crypto lender BlockFills enters restructuring after halting withdrawals

BlockFills, a Chicago-based crypto (cryptocurrency) trading and lending platform, has moved to launch a full-scale restructuring process after suspending customer withdrawals.

According to the Financial Times (FT) on the 6th (local time), BlockFills recently sought restructuring advice from global consultancy Berkeley Research Group (BRG). Last month, BlockFills halted all customer deposits and withdrawals, citing recent market and financial conditions.

Legal risks have also come to the fore. This week, a US federal court issued a temporary restraining order against BlockFills in connection with a lawsuit filed by Dominion Capital, one of the firm’s major clients. Dominion Capital alleges that BlockFills improperly managed and misappropriated client assets.

BlockFills declined to comment in detail on the ongoing litigation but told the FT it is "actively exploring a range of options to put the company in the strongest possible position."

After the withdrawal freeze, BlockFills appointed Mark Renzie of BRG as chief technology officer (CTO) as part of its overhaul. The new management team is said to have set a goal of completing the restructuring by raising fresh capital and introducing new governance and financial control systems.

Meanwhile, BlockFills—backed by major investors including Susquehanna Private Equity Investments and CME Group—has provided liquidity provision, trade execution and lending services to institutions and high-net-worth individuals such as hedge funds, mining companies and asset managers. The company said it processed more than $60 billion in trading volume last year and has more than 2,000 institutional clients in over 95 countries worldwide.