Crypto lender BlockFills has temporarily suspended deposits and withdrawals, and restricted trading on its platform, according to an email to clients last week seen by Banking Dive.
BlockFills cited “recent market and financial conditions” and the aim to “further the protection of clients and the firm” but did not detail a timeline by which the suspension would end.
The notice came as crypto’s flagship currency, bitcoin, fell almost to $60,000 on Friday – a drop of more than 36.3% within a month. The coin, which has since rebounded to around $67,000, reached a high of 126,198 in October.
Suspensions and restrictions of activity have previously signaled serious volatility – occasionally pre-dating collapses or bankruptcies, such as at FTX, BlockFi, Celsius and Genesis in 2022.
There’s no evidence that BlockFills has reached insolvency. But the Chicago-based lender also has not made a public statement on its website regarding restrictions, which may simply be a precaution.
“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 said in its email. “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.”
However, some positions or loans requiring additional margin could be closed, BlockFills said. Further, any funds deposited during the suspension period would be refused and returned, the lender said.
BlockFills has “been in active dialogue with our clients throughout this process, including information sessions and an opportunity to ask questions of senior management” and is “working tirelessly to bring this matter to a conclusion,” the lender said.
BlockFills serves as a liquidity provider and lender to about 2,000 institutional clients, including crypto-focused hedge funds and asset managers, according to its website.
Its options products are available only to investors with digital currency holdings of $10 million or more.
The company handled more than $61 billion in trading volumes last year, according to its 2025 year in review.
