Crypto lender BlockFills explores restructuring after halting withdrawals and lawsuit: FT
Crypto lender BlockFills is exploring restructuring after suspending client withdrawals and facing a lawsuit alleging improper fund management.Summary
Crypto trading and lending firm BlockFills has reportedly sought restructuring advice from consulting firm BRG following recent turmoil. The firm had previously suspended client deposits and withdrawals last month, citing market conditions. This week, a federal judge imposed a temporary restraining order amid a lawsuit from client Dominion Capital, which accuses BlockFills of improperly managing customer funds. BlockFills stated it is actively pursuing avenues to strengthen its position and appointed BRG's Mark Renzi as chief transformation officer to oversee a restructuring aimed at injecting new capital and imposing stricter controls. BlockFills, which serves institutional clients, is backed by investors including Susquehanna Private Equity Investments and CME Group.
(Source：The Block)