Chicago-based crypto liquidity provider BlockFills has suspended client withdrawals after reporting approximately $75 million in losses tied to its institutional lending operations.
The losses, which stemmed from falling crypto collateral values during recent market declines, prompted the firm to halt deposits and withdrawals on Feb. 11, 2026, raising concerns about solvency and counterparty exposure.
BlockFills co-founder and chief executive Nicholas Hammer stepped down in February 2026 and the company appointed Joseph Perry as interim CEO.
The firm primarily serves hedge funds, asset managers and high-net-worth trading firms, meaning liquidity restrictions could ripple across institutional crypto trading desks.
Some clients were reportedly warned to withdraw assets before the freeze, though customer deposits and withdrawals remain suspended as of late February.
BlockFills is actively seeking a buyer or strategic investor as it attempts to stabilise operations following the lending losses.
The episode underscores persistent structural risks in crypto lending, echoing earlier collapses at Celsius, Voyager and Genesis, where falling asset prices eroded collateral buffers and triggered wider liquidity stress across institutional markets.