Following Recent Declines, a Cryptocurrency Platform Suspends Customer Withdrawals

Cryptocurrency lending and liquidity provider BlockFills has suspended customer withdrawals following recent sharp fluctuations in digital asset markets.

The Chicago-based company, which is projected to handle approximately $60 billion in transactions by 2025, announced last week that it was suspending customer deposit and withdrawal operations. The decision is still in effect.

BlockFills, backed by Susquehanna, provides liquidity and lending services to approximately 2,000 institutional clients (including crypto-focused hedge funds and asset managers), according to information on its website. The company’s options products are only available to investors holding at least $10 million in digital assets.

A BlockFills spokesperson stated, “In light of recent market and financial conditions, we temporarily suspended customer deposit and withdrawal transactions last week to protect both customers and the company.”

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The company also stated that customers can continue to open and close positions in spot and derivatives trading under certain conditions. It was noted that management is working with investors and customers to quickly resolve the issue and restore platform liquidity.

BlockFills’ decision is reminiscent of the “crypto winter” of 2022 in the crypto market. During that period, rising US interest rates led to sharp sell-offs in global risky assets, causing the total value of the crypto market to erode by approximately 70%.

During this period, several lending platforms, including Celsius, BlockFi, Genesis, and Voyager Digital, halted withdrawals, ultimately leading to the collapse of the FTX exchange. BlockFills’ decision to suspend withdrawals coincided with Bitcoin’s price falling below $65,000 last week for the first time since 2024.

The world’s most valuable crypto asset reached its all-time high of approximately $125,000 late last year. This rise was influenced by factors such as US President Donald Trump appointing crypto-friendly regulators, a slowdown in enforcement processes targeting the sector, and the enactment of stablecoin regulations.

BlockFills has been backed by Susquehanna Private Equity Investments and CME Group’s institutional venture capital arm since its founding in 2018. Susquehanna did not respond to a request for comment, while CME Group declined to comment.

*This is not investment advice.

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