Chicago Crypto Lender Loses $75 Million, CEO Steps Down

Crypto liquidity firm BlockFills suspended withdrawals after $75 million losses and CEO Nicholas Hammer stepped down. 

Blockfills is a Chicago-based crypto liquidity provider and lender that primarily serves institutional clients such as hedge funds, asset managers, and high-net-worth trading firms.

Why It Matters

• Institutional crypto lender losses can restrict liquidity for hedge funds, traders, and asset managers.
• Withdrawal freezes raise solvency concerns and counterparty risk across crypto markets.
• Leadership exits and sale efforts signal financial distress at a major institutional trading firm.

The Details

• BlockFills co-founder and CEO Nicholas Hammer stepped down in February 2026.
• The company appointed Joseph Perry as interim CEO.
• BlockFills suspended client deposits and withdrawals on Feb. 11, 2026.
• The firm reported approximately $75 million in losses tied to its crypto lending operations.
• Losses occurred after crypto collateral backing loans fell in value during market declines.
• Some clients received warnings to withdraw assets before the freeze.
• Customer deposits and withdrawals remain halted as of late February 2026.
• BlockFills is actively seeking a buyer or strategic investor.
• The firm operates from Chicago and serves institutional crypto trading clients globally.

The Big Picture

• BlockFills provides liquidity, lending, and trading infrastructure to institutional crypto clients.
• Crypto lenders face losses when falling asset prices reduce collateral coverage on loans.
• Similar lending failures previously triggered collapses at Celsius, Voyager, and Genesis.
• Institutional crypto markets remain exposed to liquidity stress during volatile price cycles.
• Firms increasingly pursue acquisitions or restructuring after lending losses reduce available capital.