A cryptocurrency lender suspended payouts during Bitcoin’s collapse last week

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Institution-focused cryptocurrency lending platform BlockFills announced it was pausing customer deposits and withdrawals last week as Bitcoin and the broader cryptocurrency market continued to decline.

The suspension, which remains in effect, was intended to protect customers and restore liquidity on the BlockFills platform he said in post X on Wednesday.

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Last week’s market decline caused Bitcoin to fall again 24% $78,995 to $60,000.

Blockfills said the suspension of withdrawals and deposits was “in light of recent market and financial conditions.”

“Management worked with investors and customers to quickly resolve this issue and restore liquidity to the platform,” BlockFills said.

“Clients were able to continue trading using BlockFills to open and close positions in spot and derivatives trading* and in other circumstances,” BlockFills added.

Source: Block fillings

The stoppage will potentially impact about 2,000 institutional clients, including asset managers and hedge funds, who contributed more than $60 billion in trading volume on the platform in 2025.

The cryptocurrency liquidity and lending platform only serves investors with $10 million or more in crypto holdings.

BlockFills was founded by CEO Nick Hammer and President Gordon Wallace in 2017 and is backed by companies including Susquehanna Private Equity Investments and CME Group.

Bitcoin is down 46% from its October high

Bitcoin’s price began falling on October 10 after a social media post about tariffs by U.S. President Donald Trump sent shockwaves through cryptocurrency markets, helping to liquidate nearly $20 billion in positions.

It fell further in the following months, reaching a year-low of $60,008 on February 5.

Related: Crypto super PAC to spend $5 million on Barry Moore’s Senate bid: report

Bitcoin has since rebounded to $67,575, but is still 46.6% below its all-time high of $126,080 set on October 6.

The suspension of BlockFills’ withdrawal marks the first suspension among major crypto platforms as a result of market conditions.

Warehouse: Important questions: Should you sell your Bitcoin for nickels for a 43% profit?

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