BlockFills, a Chicago-based crypto liquidity provider and lender, has stopped accepting client deposits and paused withdrawals as bitcoin and other digital assets declined in value, the company said.
The firm disclosed that it halted withdrawals last week and has been focused on restoring liquidity on its platform. A company spokesperson said BlockFills is in active dialogue with its clients, which include crypto hedge funds and asset managers. The Financial Times first reported the suspension of withdrawals.
BlockFills identified itself as a significant institutional service provider: its website lists more than 2,000 institutional clients and notes the firm facilitated over $61.1 billion in trading volume in 2025.
In previous funding rounds, BlockFills raised $6 million in 2021 and an additional $37 million in 2022 from investors that PitchBook lists as including CME Ventures and Susquehanna Capital. Representatives for CME Ventures and Susquehanna Capital did not immediately respond to requests for comment.
The platform said that despite the withdrawal pause, clients have been able to open and close positions in both spot and derivatives trading. The company described the pause as temporary and offered a brief statement on efforts to resolve the issue: "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.
Market turbulence has coincided with political and policy developments. Precious metals and cryptocurrencies experienced heavy selling on January 30 after U.S. President Donald Trump named Kevin Warsh as the next Federal Reserve chair. The sell-off was attributed in market commentary to expectations that Warsh could shrink the Fed's balance sheet, a move viewed as potentially reducing demand for bitcoin. Digital asset prices have remained volatile since then, including a 20% drop on Thursday of last week.
Bitcoin, the world's largest cryptocurrency, was last reported down more than 3% at $66,534. The asset previously reached an all-time high above $125,000 in October.
The company is maintaining communication with institutional counterparties while it attempts to restore platform liquidity. The situation highlights strains that can arise for crypto lenders and liquidity providers when digital asset prices swing sharply.