BlockFills, a Chicago-based institutional crypto lender and liquidity provider, has temporarily stopped client bitcoin deposits and withdrawals after a sharp slide in Bitcoin.
The firm told customers the move was taken “in light of recent market and financial conditions,” report say.
Trading access for some accounts remains open, but transfers to and from the platform are on hold. This step has left many institutional clients unsettled and watching for the next update.
BlockFills Freezes Customer WithdrawalsIn light of recent market and financial conditions, and to further the protection of clients and the firm, BlockFills took the action last week of temporarily suspending client deposits and withdrawals. Clients have been able to continue trading with BlockFills for the purpose of…
Some accounts are restricted differently; a few can still execute spot trades while transfers are blocked. The action was taken after a rapid and deep fall in Bitcoin prices that triggered a wave of liquidations across exchanges and lending desks.
Market Trigger And Bitcoin’s Slide
Client balances are at the center of concern now. Some funds that relied on quick transfers to rebalance positions found that option closed. A number of trades were still being processed internally, but moving coins out to external wallets or exchanges was not allowed.
What Customers Are Facing NowClients have been given updates and invited to direct questions to account teams. According to messages circulated to customers, the firm is working with investors and counterparties to restore normal flows.
No formal insolvency or restructuring has been announced. That statement may calm some, but similar pauses in the past at other crypto lenders have sometimes been followed by deeper problems, which is why many clients remain cautious.
BlockFills was established in 2017 by CEO Nick Hammer and President Gordon Wallace, with financial backing from Susquehanna Private Equity Investments and CME Group.
Featured image from Unsplash, chart from TradingView
