BlockFills freezes withdrawals as Bitcoin drops below $65,000
The withdrawal suspension affects 2,000 institutional clients as Bitcoin’s decline raises concerns about liquidity constraints in crypto lending.
BlockFills, an institutional digital asset trading and lending firm, has suspended client deposits and withdrawals, citing market volatility as Bitcoin experiences significant declines.
A notice sent to clients last week stated the suspension was intended ‘to further the protection of our clients and the firm.’ The Chicago-based company serves approximately 2,000 institutional clients and provides crypto-backed lending to miners and hedge funds.
Clients were informed they could continue trading under certain restrictions, though positions requiring additional margin could be closed.
The suspension comes as Bitcoin fell below $65,000 last week, down roughly 25% in 2026 and approximately 45% from its October peak near $120,000. In the digital asset industry, withdrawal halts are often interpreted as warning signs of potential liquidity constraints.
Several crypto firms, including FTX, BlockFi, and Celsius, imposed similar restrictions during prior downturns before entering bankruptcy proceedings.
BlockFills has not specified how long the suspension will last. A company spokesperson said the firm is ‘working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform.’
Founded in 2018 with backing from Susquehanna and CME Group, there is currently no public evidence of insolvency.
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