Daily fantasy sports operator Fantasy Aces has filed for bankruptcy, reportedly due to the site having commingled player funds with operating capital.

On Wednesday, FantasyAlarm.com reported that Fantasy Aces had filed for Chapter 7 bankruptcy protection in a California bankruptcy court. The filing cites assets of $1.82m and liabilities of just under $3m – of which over $1.3m is player deposits – and indicates that “no funds will be available to unsecured creditors” after administrative expenses are paid.

News of the filing followed a confusing few days that began when rival DFS operator FantasyDraft confirmed earlier this week that its planned acquisition of Fantasy Aces – which was announced last Thursday – had fallen through due to “issues identified during our due diligence.”

The Fantasy Aces website, which had been dormant since the original acquisition announcement, switched its homepage to a black screen promising that an update was “coming shortly” but no further changes have been made. Trading in the company’s shares on the TSX Venture Exchange was suspended last week ahead of the acquisition announcement and remain suspended.