Market News

Crypto Market Turmoil: CME-Backed BlockFills Halts Withdrawals Amid Liquidity Crisis

Crypto trading and lending firm BlockFills has announced a temporary suspension of client deposits and withdrawals.

This decision was made in light of "recent market and financial conditions," as the crypto market cap recently dipped to approximately $2.2 trillion.

According to a BlockFills spokesperson, the firm halted transfers to protect both clients and the company, although trading is still available under certain circumstances.

Clients are permitted to open and close positions in spot and derivatives trading while the firm works on restoring liquidity.

BlockFills did not provide a timeline for when normal deposit and withdrawal operations would resume.

The company serves over 2,000 institutional clients, including hedge funds and asset managers, handling over $60 billion in trading volume last year.

Backing from major players like Susquehanna Private Equity Investments and CME Group’s venture arm underscores its industry significance.

The suspension follows a sharp selloff in the crypto market, with Bitcoin briefly sinking below $60,000 amid heightened liquidations.

More than $2.6 billion in leveraged crypto positions were liquidated in just 24 hours during this downturn.

As the situation unfolds, clients are left in uncertainty regarding the accessibility of their assets when withdrawals eventually reopen.