"A notice was sent last week and stated the suspension was intended "to further the protection of our clients and the firm." It added that any funds deposited during the suspension period would be refused and returned. Clients were told they could continue trading under certain restrictions, including the possibility that positions or loans requiring additional margin could be closed."
"BlockFills provides spot and derivatives execution, structured products, and crypto-backed lending to miners, hedge funds, and other professional counterparties. The Chicago-based firm has also been active in crypto credit markets, lending against bitcoin collateral and facilitating leveraged trading strategies. According to its website, BlockFills serves roughly 2,000 institutional clients, with options products available only to investors holding at least $10 million in digital assets."
"In the digital asset industry, a halt on customer withdrawals is often interpreted as a warning sign, potentially indicating liquidity constraints or asset-liability mismatches. Several crypto trading and lending firms, including FTX, BlockFi, Celsius, Genesis Capital, Vauld, and Voyager, imposed similar restrictions during prior market downturns before entering restructuring or bankruptcy proceedings."
BlockFills temporarily suspended client deposits and withdrawals, citing recent market and financial conditions and saying the move is intended to further the protection of clients and the firm. The firm said funds deposited during the suspension would be refused and returned. Clients may continue trading under restrictions and face possible closure of positions or loans requiring additional margin. BlockFills offers spot and derivatives execution, structured products, and crypto-backed lending, and serves roughly 2,000 institutional clients. The company did not set a timeline, cited market volatility, and said it is working with clients to restore liquidity.
Read at Bitcoin Magazine
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