Blockfils, the Susquehanna-backed Chicago-based crypto options and lending platform, is preparing for a corporate restructuring after suffering significant financial losses and facing lawsuits from customers alleging mishandling of funds.
The company has asked consulting group BRG and law firm Katten Muchin Rosenman to advise on its restructuring efforts, the Financial Times reported.
Last month, BlockFills froze customer withdrawals following loan losses and unsuccessful bets related to its cryptocurrency mining business. The company subsequently disclosed to potential investors that there were inaccuracies in its financial reporting.
A federal judge in Manhattan on Thursday issued a temporary restraining order against Blockfils following a lawsuit from Dominion Capital that alleges the company mishandled customer funds.
Dominion alleges that the company mixes customer assets and fails to segregate funds by customer. According to court filings, BlockFills executives acknowledged that customer assets are kept together on a single balance sheet rather than in separate wallets.
The lawsuit also alleges that company executives used these funds to cover operating expenses, cryptocurrency mining losses, and unsecured loans.
BlockFills said it is actively considering options to stabilize the company.
The company is working on a restructuring plan that could bring in new capital and strengthen its financial controls, and has appointed BRG executive Mark Renzi as chief transformation officer.
BlockFills told potential investors that its financial problems stem from losses in trading, lending, and cryptocurrency mining, as well as poor bookkeeping. The company reported a deficit of approximately $80 million on its balance sheet.
BlockFills also reported losses of approximately $23 million related to loan exposures to Babel Finance and Aexa Digital Finance, which later filed for bankruptcy. The company also borrowed money from Celsius’ bankruptcy estate, while also borrowing money from FTX’s bankruptcy.
The company lost nearly $30 million in cryptocurrency mining operations and subsequently shut down the business.
Founded in 2018, BlockFills processed approximately $60 billion in trading volume in 2025, including $20 billion in spot trades and approximately $40 billion in derivatives.
Disclosure: This article was edited by Estefano Gómez. Please see our Editorial Policy for more information on how we create and review content.