Reliz Technology Group Holdings Inc., which operates the institutional digital asset brokerage BlockFills, is advancing toward a July 13, 2026 confirmation hearing on its Chapter 11 plan after resolving its central dispute with prepetition secured creditor Celsius Network Ltd. The case is now positioned for emergence through a customer-led "NewCo" transaction that would transfer the operating business free and clear of liens, with an alternative sale or liquidation available as a fallback.
The Debtors filed Chapter 11 in Delaware on March 15, 2026, following a liquidity collapse driven by overlapping counterparty losses—roughly $8.5 million trapped in the Babel Finance bankruptcy, a $12 million settlement obligation to Nexo Capital from a failed equipment loan, and an unsatisfied Celsius arbitration award—and compounded by a February 2026 cryptocurrency crash that forced the suspension of deposits and withdrawals while customer lawsuits and temporary restraining orders further restricted operations. Renzi DeclarationDkt. 3 The Debtors reported approximately $149.8 million in prepetition debt, comprising about $4.8 million of funded debt under two Celsius secured promissory notes accruing at 12% per annum and purportedly secured by first-priority liens on substantially all assets, alongside roughly $145 million of general unsecured customer and trade obligations. Cash Collateral MotionDkt. 16
Postpetition liquidity has rested entirely on cash collateral rather than new-money DIP financing. A Second Interim Cash Collateral OrderDkt. 119 initially capped use at $5 million, after which the Debtors sought a third interim order authorizing up to $12.5 million and, as part of a consensual package with Celsius, agreed to waive surcharge rights under Section 506(c) and "equities of the case" claims under Section 552(b). On April 7 the Debtors filed a Joint Chapter 11 Plan offering a dual path: participating customers would contribute distributions for equity in a newly formed, privately held NewCo acquiring the operating assets free and clear of liens, while non-transferred assets and causes of action would vest in a post-confirmation liquidating trust overseen by a three-member committee.
The principal contested creditor has now been settled. On June 30, 2026, the court approved a settlement with Celsius allowing its claims at $5 million as secured, payable through staged initial-sale, effective-date, and final-sale distributions partly funded by the assumption and assignment of the InvestiFi SAFE Note, with Celsius releasing liens on sold collateral and agreeing to vote in favor of the Plan. Celsius Settlement OrderDkt. 478 The settlement drew no objections, and the June 30 omnibus hearing was cancelled once the order was entered, leaving the July 13 confirmation hearing as the case's remaining milestone.
