The Daily: BlockFills files for Chapter 11 bankruptcy, probe finds document alleging $5M Milei-Libra promotion deal, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Monday! Bitcoin (BTC) briefly topped $74,000 as institutional demand returns and the asset begins to decouple from stocks, with analysts pointing to strong ETF inflows, corporate accumulation, and a potential volatility trigger around the $75,000 options strike.

In today's newsletter, BlockFills files for Chapter 11 bankruptcy, a newly recovered document details an alleged $5 million Milei-Libra promotion deal, Strategy's bitcoin holdings surpass 750,000 BTC, and more.

Meanwhile, Polymarket bettors send death threats to a reporter over a missile report tied to a $14 million prediction market pool.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Crypto lender BlockFills files for Chapter 11 bankruptcy after weeks of turmoil

Crypto trading and lending firm BlockFills filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware following weeks of turmoil.

• The filing lists estimated assets between $50 million and $100 million against liabilities ranging from $100 million to $500 million.
• BlockFills said the Chapter 11 restructuring was "the most responsible path forward" to stabilize the business, secure liquidity, and explore "strategic transactions."
• The bankruptcy follows a February decision to temporarily halt client deposits and withdrawals amid mounting liquidity challenges.
• A U.S. federal judge earlier issued a temporary restraining order in a lawsuit by Dominion Capital, accusing BlockFills of misappropriating customer crypto assets.
• The Chicago-based firm, backed by investors including Susquehanna Private Equity Investments and CME Group's venture arm, said it processed more than $61 billion in trading volume in 2025 and serves over 2,000 institutional clients across more than 95 countries.

Probe reveals document detailing alleged $5 million deal linking Milei to Libra promotion

A document recovered from crypto lobbyist Mauricio Novelli's phone outlines an alleged $5 million payment structure tied to Argentine President Javier Milei promoting the Libra memecoin, according to local investigative outlet El Destape.

• The note, dated three days before Milei's since-deleted X post about Libra, details staged payments, including one tied to announcing Kelsier Ventures CEO Hayden Davis as an adviser.
• The document does not explicitly specify who would receive the payments.
  Forensic call logs reportedly show Milei, his sister Karina Milei, and senior advisers communicating repeatedly with Novelli around the token's launch and subsequent collapse.
• Libra briefly reached a market cap above $4 billion after Milei's post in February 2025 before crashing more than 90%, with wallets linked to the project cashing out an estimated $107 million.

Strategy buys another 22,337 BTC for $1.6 billion as STRC boosts acquisitions

Strategy said it purchased another 22,337 BTC for about $1.57 billion at an average price of $70,194 per bitcoin, marking its fifth-largest acquisition announcement to date.

• The company now holds 761,068 BTC worth roughly $56 billion, representing more than 3.5% of bitcoin's total supply.
• Strategy funded the latest purchases through $396 million in proceeds from at-the-market sales of MSTR common stock and $1.18 billion from STRC perpetual Stretch preferred shares.
• STRC sales are increasingly driving Strategy's bitcoin buying, with the preferred stock currently yielding about 11.5% and seeing record volume last week.

Abra to go public via SPAC merger at $750 million valuation

Digital asset wealth management platform Abra agreed to go public through a SPAC merger with New Providence Acquisition Corp. III.

• The transaction values Abra at a $750 million pre-money equity valuation and would list the combined company on Nasdaq under the ticker ABRX.
• The deal could provide up to $300 million in growth capital from the SPAC's trust account, subject to shareholder redemptions, with existing Abra investors — including Adams Street, Blockchain Capital, Pantera Capital, RRE Ventures, and SBI — set to roll 100% of their equity into the new entity.
• Abra said it aims to build institutional-grade crypto wealth management products, targeting more than $10 billion in assets under management by 2027.

ShapeShift founder Erik Voorhees buys $56 million worth of Ethereum: onchain analysts

ShapeShift founder Erik Voorhees bought about $56.5 million worth of ETH again through two wallets after selling his ether (ETH) holdings roughly a year ago, according to onchain analysts.

• Arkham labeling shows the wallets accumulated nearly 25,000 ETH using USDT, with one wallet continuing to swap additional stablecoins for ether.
• Voorhees also recently purchased about $23.7 million in tokenized gold assets XAUT and PAXG, per onchain data.

In the next 24 hours

• It's quiet on the economic calendar front.
• Astar and ZKsync are among the crypto projects set for token unlocks.
• CBC Summit Europe kicks off in London.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.