Cryptocurrency lending platform BlockFills suspends customer withdrawals, evoking the tragic memories of "FTX collapse" in the crypto community

Chicago cryptocurrency lending institution BlockFills has pressed the "pause button" amid severe market fluctuations, raising concerns about a liquidity crisis.

According to the latest report from the Financial Times, cryptocurrency lending and liquidity provider BlockFills has suspended customer withdrawals and restricted trading on its platform, highlighting the severe impact of recent turmoil in the digital asset market on institutional levels.

The Chicago-based company implemented measures to suspend customer deposits and withdrawals last week, and these restrictions remain in place. While customers are still allowed to trade under certain circumstances to manage their positions, the freezing of funds undoubtedly signals liquidity tightening in the market.

A BlockFills spokesperson stated: “In light of recent market and financial conditions, and to further protect our customers and the company, BlockFills took the action to temporarily suspend customer deposits and withdrawals last week.” The company's management is currently working closely with investors and clients to quickly resolve the issue and restore platform liquidity.

This move has triggered sensitive nerves among investors. As Bitcoin's price fell below the $65,000 mark, the liquidity difficulties faced by a major lending platform aimed at institutions inevitably evoke memories of the credit crisis that swept the entire cryptocurrency industry in 2022, when the collapse of several lending institutions ultimately led to the downfall of the FTX exchange.

Institutional Clients Under Pressure and Endorsements from Giants

BlockFills is not a small platform aimed at retail investors; its business turmoil directly affects the "whales" of the cryptocurrency market.

According to its website, the company provides liquidity and lending services to approximately 2,000 institutional clients, including hedge funds and asset management companies focused on cryptocurrency. Its options products have a high threshold, only open to investors holding over $10 million in digital asset holdings.

In 2025, the company's trading volume was as high as $60 billion. Since its establishment in 2018, BlockFills' expansion has been supported by heavyweight capital, including Susquehanna International Group and the corporate venture capital arm of the world's largest derivatives exchange, CME.

In response to this crisis, CME declined to comment, and Susquehanna did not immediately respond to requests for comments regarding the withdrawal suspension. This silence has intensified market concerns about the spread of the crisis.

The Shadow of the 2022 "Crypto Winter" Reemerges

BlockFills' decision to lock customer funds comes just three years after the last major downturn in the cryptocurrency market. The current situation bears a striking resemblance to the "crypto winter" of 2022.

That year, as the Federal Reserve's interest rate hikes triggered a global sell-off in risk assets, the cryptocurrency market's market capitalization evaporated by nearly 70%. Under the pressure of liquidity exhaustion, lending institutions such as Celsius, BlockFi, Vauld, Genesis, and Voyager all suspended their withdrawal services before collapsing. This series of default events ultimately culminated in the collapse of Sam Bankman-Fried's cryptocurrency exchange FTX.**

BlockFills' current predicament indicates that despite the industry's strengthened compliance and risk control measures, the risks of high leverage and liquidity mismatch still exist when facing significant asset price declines. A company spokesperson emphasized that customers can still trade on the platform "for the purpose of opening and closing spot and derivative transactions," but this has not completely alleviated market concerns about the safety of funds.

Price Halving and Policy Stalemate

The macro backdrop for the suspension of withdrawals is a comprehensive correction in the cryptocurrency market. Last week, Bitcoin's price fell below $65,000 for the first time since 2024.

As the highest market capitalization cryptocurrency globally, Bitcoin reached a historic high of nearly $125,000 at the end of last year. The upward momentum at that time was driven by market optimism regarding the appointment of industry-friendly regulators by elected President Donald Trump, the cessation of enforcement actions against cryptocurrency companies, and the passage of stablecoin regulations.

However, the situation took a sharp turn. Since peaking in October last year, Bitcoin's price has dropped by about 45%, with a decline of nearly 25% this year.

On October 10, the market experienced the worst single-day sell-off in history, with billions of dollars in leveraged cryptocurrency trades being forcibly liquidated.

Additionally, the sell-off triggered by tariff threats from the Trump administration and the stagnation of U.S. legislative processes targeting the industry further dampened market sentiment, leading to a continued tightening of liquidity, which ultimately transmitted to intermediary institutions like BlockFills.