In a statement issued on Wednesday, the Chicago-based firm confirmed that it suspended withdrawals last week and is actively working to restore liquidity to its platform. The company said it remains in communication with its clients, which include crypto hedge funds and asset managers, and has been providing regular updates as it addresses the issue.
The Financial Times first reported the suspension of withdrawals, highlighting concerns about the potential knock-on effects of the recent market drop.
BlockFills has attracted significant investor backing since its launch, raising $6 million in 2021 and an additional $37 million in 2022, with participation from major industry investors such as CME Ventures and Susquehanna Capital, according to PitchBook data. Representatives of CME Ventures and Susquehanna Capital did not immediately respond to requests for comment.
The company claims to serve more than 2,000 institutional clients, and its platform facilitated over $61.1 billion in trading volume in 2025, according to its website.
The suspension comes amid a broader sell-off in cryptocurrencies and precious metals on January 30, following U.S. President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair. Markets reacted to expectations that Warsh could pursue policies that would shrink the Fed’s balance sheet, potentially reducing demand for bitcoin. Since then, digital asset prices have continued to fluctuate, including a 20% drop last Thursday.
Bitcoin was last trading down more than 3% at $66,534, a significant decline from its all-time high above $125,000 in October.
Despite the pause on withdrawals, BlockFills said clients have still been able to open and close positions in spot and derivatives trading. The company described the pause as temporary and reassured users that it is working to resolve the issue quickly.
“BlockFills is working tirelessly to bring this matter to a conclusion and will continue to regularly update our clients as developments warrant,” a company spokesperson said.