Crypto trading firm BlockFills explores restructuring amid losses and customer lawsuit
Crypto firm BlockFills is exploring restructuring due to significant losses and a customer lawsuit alleging commingling of funds.Summary
BlockFills, a Chicago-based crypto options and lending platform backed by Susquehanna, is undergoing corporate restructuring after incurring substantial financial losses and facing legal action. The firm engaged consulting group BRG and law firm Katten Muchin Rosenman for advice after freezing client withdrawals last month due to loan losses and failed crypto mining bets. A Manhattan federal judge issued a temporary restraining order following a lawsuit by Dominion Capital, which claims BlockFills improperly handled customer funds by co-mingling assets on a single balance sheet and using them for operating expenses and mining losses. BlockFills disclosed to potential investors a balance sheet deficit of about $80 million, stemming from trading, lending losses (including $23 million from exposure to bankrupt Babel Finance and Aexa Digital Finance), and nearly $30 million in crypto mining losses. The firm has appointed Mark Renzi as chief transformation officer to guide the restructuring, which aims to secure new capital and improve financial controls.
(Source：Crypto Briefing)