Susquehanna-Backed Crypto Lender Freezes Assets as Bitcoin Drops 48%

A Chicago-based crypto trading platform backed by the market-making giant Susquehanna Investment Group is temporarily halting all customer deposits and withdrawals as the digital asset market crashes.

Deposit and Withdrawal Transactions Suspended

In a statement published on Wednesday, Blockfill says it still supports other transactions on its platform but it is taking measures to protect clients and the firm in light of market and financial conditions.

“Clients have been able to continue trading with BlockFills for the purpose of opening and closing positions in spot and derivatives trading and select other circumstances. BlockFills is committed to transparency in its communications and to the protection of its clients,” the statement reads.

The firm, which serves over 2,000 institutional clients across over 95 countries and facilitated over $61.1 billion in transaction volume last year, says it is working with investors and clients to resolve liquidity issues. 

“Management has been working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform. The firm has also been in active dialogue with our clients throughout this process, including information sessions and an opportunity to ask questions of senior management.”

Bloodbath in the Crypto Market

The crypto lender’s decision to lock up clients’ funds comes amid a market meltdown that saw Bitcoin (BTC), the benchmark digital asset for investors’ willingness to take risks in cryptocurrencies, plunges to nearly half of its all-time high.

In October last year, Bitcoin was trading north of 126,000 but it currently hovers at $66,000, or roughly 48% down from its peak price. 

This is not the first time that the downturn in the digital asset market prompted firms to freeze their customers’ assets. Prominent cryptocurrency lenders Celsius Network and BlockFi also suspended withdrawals when they faced liquidity crises last crypto winter.