Crypto Lender Halts Withdrawals During Bitcoin’s Sharp Market Drop

Institutional crypto lending platform BlockFills has temporarily suspended customer deposits and withdrawals following last week’s sharp decline in Bitcoin and the broader digital asset market.

The halt remains in effect as the firm works to restore liquidity.

Suspension Follows 24% Bitcoin Decline

Last week’s market turbulence saw Bitcoin drop 24%, falling from $78,995 to $60,000 amid heightened volatility across crypto markets.

In a statement posted on X, BlockFills said the decision came:

“In light of recent market and financial conditions.”

The company added that the move was designed to protect clients while management works closely with investors and customers to stabilize operations.

“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 stated.

Trading Remains Active

Despite the suspension of deposits and withdrawals, BlockFills confirmed that clients are still able to trade on the platform.

Customers may continue:

• Opening and closing spot positions

• Trading derivatives

• Executing select other transactions

The firm emphasized that trading functionality remains operational even as liquidity conditions are being addressed.

(Source: BlockFills X statement — https://x.com/blockfills/status/2021685236900237507)

Impact on Institutional Clients

The halt could affect roughly 2,000 institutional clients, including asset managers and hedge funds. These clients reportedly generated more than $60 billion in trading volume in 2025.

BlockFills exclusively serves large investors holding at least $10 million in crypto assets.

Founded in 2017 by CEO Nick Hammer and President Gordon Wallace, the company is backed by major financial institutions, including Susquehanna Private Equity Investments and CME Group.

Bitcoin Still Deep Below October High

Bitcoin’s downturn began on Oct. 10 following market volatility triggered by tariff-related commentary from US President Donald Trump. The move contributed to nearly $20 billion in liquidations across crypto markets.

Bitcoin later reached a year-to-date low of $60,008 on Feb. 5. While it has since rebounded to approximately $67,575, the asset remains 46.6% below its all-time high of $126,080, recorded on Oct. 6.

BlockFills’ withdrawal suspension marks the first major liquidity freeze among large crypto platforms in response to current market conditions, raising renewed attention around systemic risk during periods of extreme volatility.

See all our insights: Bitcoin World News