Filing Alert: BlockFills Chapter 11
Reliz Technology Group Holdings Inc., a Chicago, IL-based cryptocurrency trading firm, filed for Chapter 11 protection on March 15, 2026, in the U.S. Bankrup...
Reliz Technology Group Holdings Inc. and its debtor affiliates⁽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.
The company 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
Counsel:
- David R. Hurst
McDermott Will & Schulte LLP
Email: dhurst@mcdermottlaw.com
Co-counsel:
- Katten Muchin Rosenman LLP
Financial Advisor:
- Berkley Research Group, LLC
Signatories:
- Joseph Perry – Interim Chief Executive Officer
Claims Agent:
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