Bitcoin Crash Forces Major Crypto Lender BlockFills to Freeze Withdrawals

TLDR

• Crypto lending platform BlockFills halted customer deposits and withdrawals last week during Bitcoin’s market crash
• The suspension remains active with no timeline for resumption, affecting over 2,000 institutional clients
• Clients can still trade and manage positions but cannot move funds in or out of the platform
• BlockFills serves only investors with crypto holdings of $10 million or more and processed $60 billion in trading volume in 2025
• The halt came as Bitcoin fell below $60,000 and over $2.6 billion in leveraged positions were liquidated

Chicago-based crypto lending platform BlockFills suspended customer deposits and withdrawals last week as Bitcoin dropped below $60,000. The company cited recent market and financial conditions as the reason for the halt.

The suspension remains in effect with no announced timeline for resumption. BlockFills said the move was intended to protect clients and restore liquidity to the platform.

Over 2,000 institutional clients are potentially affected by the withdrawal freeze. These clients include asset managers, hedge funds, and other high-net-worth investors.

BlockFills only serves investors with crypto holdings of $10 million or more. The platform processed over $60 billion in trading volume in 2025 across more than 95 countries.

Despite the freeze on deposits and withdrawals, customers can still place trades on the platform. They can open and close positions in both spot and derivatives trading under certain circumstances.

The company announced the suspension on X on Wednesday. Management said it has been working with investors and clients to resolve the issue quickly.

Market Conditions Behind the Halt

Bitcoin fell 24% last week from $78,995 to $60,000. The cryptocurrency hit a year-to-date low of $60,008 on February 5.

The market downturn began on October 10 after a social media post about tariffs by US President Donald Trump. The post triggered shockwaves through crypto markets and contributed to nearly $20 billion in position liquidations.

More than $2.6 billion in leveraged crypto positions were liquidated in a 24-hour period during last week’s selloff. The total crypto market cap fell to around $2.2 trillion, its lowest level since September 2024.

Bitcoin has since recovered to $67,575 but remains 46.6% below its all-time high. The cryptocurrency reached $126,080 on October 6 before the decline began.

Company Background and Backing

BlockFills was founded in 2017 by CEO Nick Hammer and President Gordon Wallace. The company provides liquidity, trading execution, and lending services to institutional crypto participants.

The platform is backed by Susquehanna Private Equity Investments and CME Group’s venture arm. These investors have supported the company’s growth in the institutional crypto lending space.

BlockFills declined to provide additional details about its liquidity conditions. The company also did not comment on whether client assets would remain fully accessible once withdrawals reopen.

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