Crypto Lender BlockFills Files for Chapter 11 Bankruptcy
BlockFills parent Reliz Ltd. seeks bankruptcy protection with up to $500M in liabilities dwarfing its assets.
Another crypto lender bites the dust. Reliz Ltd., the parent company behind Chicago-based crypto lending platform BlockFills, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
The numbers paint a grim picture. The company reports estimated assets between $50 million and $100 million. Its liabilities? A staggering $100 million to $500 million. That's a hole that could be as deep as $450 million.
Chapter 11 filing means BlockFills intends to restructure rather than liquidate outright. But with liabilities potentially outpacing assets by a factor of five, the road to recovery looks steep.
The crypto lending space continues to be a graveyard of overextended firms. BlockFills now joins a growing list of companies that couldn't survive the sector's brutal economics.