Crypto lender BlockFills suspends withdrawals amid faltering bitcoin price
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FILE PHOTO: Representation of bitcoin cryptocurrency in this illustration created on September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
By Hannah Lang and Elizabeth Howcroft
Feb 11 (Reuters) - Crypto liquidity provider and lender BlockFills has halted client deposits and withdrawals amid a downturn in bitcoin prices, in a sign of knock-on impact from the latest crypto market drop.
BlockFills, which is based in Chicago, said in a statement on Wednesday that it halted withdrawals last week and has been working to restore liquidity to its platform. The company is in active dialogue with its clients, which include crypto hedge funds and asset managers, a spokesperson said.
The Financial Times first reported that the company had suspended withdrawals.
BlockFills raised $6 million in 2021 and a further $37 million in 2022, from investors including CME Ventures and Susquehanna Capital, according to PitchBook data. CME Ventures and Susquehanna Capital did not immediately respond to a request for comment.
The company has more than 2,000 institutional clients and facilitated more than $61.1 billion in trading volume in 2025, according to its website.
Precious metals and cryptocurrencies sold off heavily on January 30, after U.S. President Donald Trump named Kevin Warsh as the next Fed chair, due to expectations he could shrink the Fed's balance sheet, potentially reducing demand for bitcoin. Digital asset prices have seesawed since, including a drop of 20% on Thursday of last week.
The world's largest cryptocurrency was last down more than 3% at $66,534. It previously hit an all-time high of above $125,000 in October.
BlockFills said clients have still been able to open and close positions in spot and derivatives trading despite the pause on withdrawals, which it called temporary.
"BlockFills is working tirelessly to bring this matter to a conclusion and will continue to regularly update our clients as developments warrant," the spokesperson said.
(Reporting by Hannah Lang in New York and Elizabeth Howcroft in Paris; Editing by Matthew Lewis)
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