Filing Alert: BlockFills Chapter 11

Update (Mar. 16, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Reliz Technology Group Holdings Inc.

Reliz Technology Group Holdings Inc. and its debtor affiliates (dba BlockFills)⁽¹⁾, a Chicago, IL-based cryptocurrency trading firm, filed for Chapter 11 protection on Mar. 15 in the U.S. Bankruptcy Court for the District of Delaware.

The company attributes its liquidity crisis to cascading exposure from several counterparty defaults—specifically an $8.5 million impairment in the Babel Finance bankruptcy and a $12 million settlement stemming from the AEXA bankruptcy—alongside an adverse arbitration obligation requiring payments to Celsius. Compounding these balance sheet pressures were stranded capital from a failed 2022 mining hardware deployment and delayed 2024 financials. Following the collapse of both a planned acquisition in late 2025 and a subsequent recapitalization effort, a February 2026 crypto market crash triggered severe withdrawal demands, forcing the company to suspend platform activity. The distress culminated in early March 2026 when temporary restraining orders stemming from prepetition customer lawsuits alleging misappropriation severely restricted operations, prompting the filing to preserve estate value.

The debtors entered Chapter 11 with a Term Sheet negotiated with an ad hoc group of their largest customers to implement a reorganization via a newly formed entity ("NewCo"). The proposed plan contemplates transferring the debtors' core operating assets and licenses to NewCo free and clear, while funneling remaining assets into a liquidating trust. Customer claims will be satisfied via a pro rata share of trust interests and liquid assets, with participating customers afforded an election to equitize their liquid recoveries into NewCo. The capitalization strategy includes a $15 million new money equity investment opportunity for accredited participating customers. General unsecured claims are bifurcated: essential go-forward vendors will receive pro rata liquid distributions, while non-essential prepetition trade claims shall receive trust interests. Additionally, the plan structures a $1 million aggregate cash-out convenience class for the 807 smallest customer claims to ease administrative burden.

Reliz Technology Group Holdings Inc. reports $50 million to $100 million in assets and $100 million to $500 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-10371.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

Lead Bankruptcy Counsel:

• David R. Hurst
  McDermott Will & Schulte LLP
  Email: [email protected]

Co-counsel:

• Katten Muchin Rosenman LLP

Financial Advisor / CRO:

• Berkley Research Group, LLC (Mark Renzi)

Signatories:

• Joseph Perry – Interim Chief Executive Officer

Claims Agent:

• Verita Global, LLC

Equity Security Holders:

• Name on File – 25% Equity Interest
• Name on File – 25% Equity Interest
• K&H Crypto LLC – 17% Equity Interest
• P3K LLC – 9% Equity Interest
• Susquehanna Private Equity Investments LLLP – 5% Equity Interest
• Other Minority Holders – 19% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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