Another crypto company halts withdrawals as markets slide

Arjun Parashar

February 11, 2026 3 min read

Another centralized crypto platform has halted client withdrawals following a sharp market downturn, reviving uncomfortable memories of past liquidity crunches that rippled across the industry.

The move comes as digital asset prices reel from a steep sell-off, with Bitcoin and major altcoins shedding billions in market value in recent sessions. While the firm says trading remains partially operational, the freeze has once again put counterparty risk in the spotlight.

Withdrawal suspensions have historically marked moments of acute stress in crypto markets, sometimes as temporary safeguards, other times as precursors to deeper solvency problems.

Withdrawal freezes aren’t new in crypto

Pauses on withdrawals during periods of volatility are not unprecedented in the digital asset sector. During the 2022 “crypto winter,” several major centralized lenders and exchanges froze customer funds as liquidity pressures mounted.

Platforms including Celsius, Voyager Digital, BlockFi and Genesis suspended withdrawals before ultimately filing for bankruptcy.

At the time, falling token prices, margin calls and overleveraged balance sheets created a domino effect, with firms scrambling to meet redemption demands in the absence of deposit insurance or a lender of last resort.

More recently, in 2025, several exchanges faced temporary operational freezes. Binance, for example, briefly suspended futures trading for under an hour due citing technical issues.

While services were restored quickly and no insolvency was reported, the incident underscored how even short-lived disruptions can rattle investor confidence, especially during stressed market conditions.

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What happened with BlockFills

Chicago-based institutional trading and lending firm BlockFills has temporarily suspended client deposits and withdrawals, citing current market and financial conditions.

Crypto market <a href= — Crypto market heatmap at the time of writing

The company said the measure was taken to protect both clients and the firm, noting that deposits and withdrawals were temporarily suspended amid recent market and financial conditions. Trading remains available for opening and closing spot and derivatives positions under certain restrictions.

“In light of recent market and financial conditions, and to further the protection of clients and the firm, we have temporarily suspended client deposits and withdrawals,” the company said, adding that it is “working diligently to restore liquidity to the platform as quickly as possible.”

BlockFills primarily serves institutional counterparties, including hedge funds and digital asset managers, and has been active in crypto-backed lending and liquidity provision since 2018.

The firm has not indicated how long the suspension will remain in place and has not publicly confirmed any solvency issues.

Crypto markets have been under pressure recently

The halt coincides with renewed weakness across crypto markets. Bitcoin has retreated sharply from its recent highs, at one point dipping below the $65,000 level amid broader risk-off sentiment.

Volatility has spiked as macroeconomic uncertainty, shifting interest rate expectations and regulatory delays weigh on investor appetite for risk assets. Analysts have pointed to thinner liquidity conditions amplifying downside moves.

In the past 24 hours, Bitcoin is trading near $66,900, down about 3.6%, while Ether is hovering around $1,946, lower by roughly 4%. XRP is also down close to 3.8% over the same period.

Liquidations have also accelerated during the downturn, with roughly $395.8 million in leveraged crypto positions wiped out over the past 24 hours.

This story was originally published by TheStreet on Feb 11, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.