BlockFills has filed for Chapter 11 bankruptcy in the US after suspending deposits and withdrawals last month, citing poor crypto market conditions.
Crypto lending platform BlockFills has filed for bankruptcy in the US after the company halted customer deposits and withdrawals last month.
Reliz LTD, BlockFills’ operating company, along with three other related companies, filed for Chapter 11 bankruptcy in a Delaware bankruptcy court in a bid to restructure the firm.
BlockFills said in a statement that filing for bankruptcy came after ”extensive discussions with investors, clients, creditors, and other stakeholders,” and the restructuring would “preserve the value of the business and maximize recoveries for stakeholders.”
“The BlockFills team has worked diligently to pursue and evaluate all available strategic and financial alternatives and believes initiating a chapter 11 process, with the intention of consummating a consensual restructuring with our clients and creditors, will provide the necessary time and structure to stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions,” the company said.
Related: Judge freezes 71 Bitcoin in BlockFills case over customer fund claims
Last month, BlockFills suspended customer deposits and withdrawals, citing the need to protect its business and clients amid a broad crypto market downturn that saw Bitcoin (BTC) tumble from over $97,000 to under $64,000 between mid-January and early February.
This is a developing story, and further information will be added as it becomes available.
Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation — Santiment founder
