BlockFills Freezes Client Transactions Amid Bitcoin Price Collapse
BlockFills, a cryptocurrency lending service, froze all client deposit and withdrawal activity last week in an effort to safeguard customer interests and rebuild platform liquidity as Bitcoin crashed to the $60,000 level.
BlockFills, a cryptocurrency lending service catering to institutional investors, revealed it froze customer deposit and withdrawal capabilities last week amid ongoing turbulence in Bitcoin and wider cryptocurrency markets.
According to a statement posted on X this Wednesday, the freeze remains active and was implemented as a protective measure for customers while working to reestablish platform liquidity, BlockFills explained.
The market downturn experienced last week witnessed Bitcoin plummeting an additional 24% from its $78,995 level down to $60,000.
According to BlockFills, the decision to freeze withdrawals and deposits was made "in light of recent market and financial conditions."
"Management has been working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform," BlockFills said.
"Clients have been able to continue trading with BlockFills for the purpose of opening and closing positions in spot and derivatives* trading and select other circumstances," BlockFills added.
Approximately 2,000 institutional customers, ranging from asset management firms to hedge funds, may be affected by the freeze. These clients generated over $60 billion in trading volume through the platform during 2025.
Operating exclusively for high-net-worth crypto investors, the liquidity and lending platform requires clients to maintain cryptocurrency holdings valued at $10 million minimum or above.
Chief Executive Officer Nick Hammer and President Gordon Wallace established BlockFills in 2017, securing financial backing from prominent investors including Susquehanna Private Equity Investments and CME Group.
Bitcoin is down 46% from its October high
The decline in Bitcoin's valuation commenced on Oct. 10 following a tariff-related social media message from US President Donald Trump that triggered widespread panic across cryptocurrency markets, resulting in position liquidations totaling nearly $20 billion.
The cryptocurrency continued its downward trajectory in subsequent months, reaching a year-to-date bottom of $60,008 on Feb. 5.
While Bitcoin has recovered somewhat to trade at $67,575, the digital currency remains 46.6% below its historic peak of $126,080 achieved on Oct. 6.
The withdrawal freeze implemented by BlockFills represents the first instance of a major cryptocurrency platform suspending operations due to prevailing market conditions.