Institutional crypto trading platform BlockFills halted client withdrawals and restricted trading last week, according to multiple reports, reviving anxieties within the digital asset space reminiscent of the market collapses of 2022. The Chicago-based firm, which processed $60 billion in trading volume last year, informed clients of the decision via internal email, according to TheMinerMag.
The move comes as cryptocurrency markets experience significant downward pressure. Bitcoin has fallen roughly 48% from its peak in October, currently trading around $66,000, and has declined approximately 29% in the past month, Binance data shows. Ethereum and Solana have also seen substantial losses, with declines of 40% and 45% respectively over the same period.
BlockFills primarily operates as a crypto lending platform, serving hedge funds and other asset managers by utilizing cryptocurrency as collateral and providing liquidity. The company states it has over 2,000 institutional clients. In a statement to the Financial Times, a BlockFills spokesperson said the action was taken “in light of recent market and financial conditions, and to further the protection of clients and the firm,” adding that clients could continue trading to open and close positions in spot and derivatives trading, and in select other circumstances.
The suspension of withdrawals echoes similar actions taken by crypto lenders Celsius and BlockFi during the 2022 crypto winter. Although BlockFills is a less widely recognized name than those firms, the decision underscores the continued fragility within the digital asset sector.
The downturn in cryptocurrency values follows a period of optimism fueled, in part, by expectations surrounding a second term for former President Donald Trump. While Bitcoin initially reached a record high during the first nine months of his renewed presidency, those gains have since been erased. Legislation considered crypto-friendly, signed by Trump in July, faced a stall in January, contributing to the shifting market sentiment.
BlockFills is backed by Susquehanna Investment Group, a major market-making firm. A spokesperson for BlockFills declined to provide further comment to Fortune on the matter.
