Crypto Lender BlockFills Suffers $75 Million Losses, Freezes Client Withdrawals

BlockFills, a leading provider of cryptocurrency liquidity services, has frozen client withdrawals after suffering significant losses in its lending operations. According to reports, the company has accumulated around $75 million in losses, which has led to a halt in customer deposits and withdrawals.

The CEO of BlockFills, Nicholas Hammer, stepped down in February 2026, and was replaced by Joseph Perry as interim CEO. The company is now actively seeking a buyer or strategic investor to help stabilize its finances.

The freeze on client withdrawals has raised concerns about the solvency of institutional crypto lenders and their impact on market liquidity. This issue is particularly relevant in the current market environment, where volatile price cycles can reduce collateral coverage on loans and lead to lending failures.