Crypto M&A: Susquehanna-backed Blockfills seek sale after millions in lending losses

CoinDesk

by Will Canny

February 19, 2026

AI-Generated Deep Dive Summary

Blockfills, a cryptocurrency lending platform backed by Susquehanna, is reportedly seeking buyers after suffering $75 million in losses during recent market downturns. The company temporarily suspended client deposits and withdrawals last week amid challenging financial conditions. Blockfills’ management stated it was working with investors and clients to resolve the situation and restore liquidity, though trading activities for spot and derivatives remain operational. Despite its $60 billion trading volume in 2025—a 28% increase from 2024—the company’s struggles mirror those of other crypto firms during the 2022 “crypto winter,” which saw similar halts by major players like Celsius and BlockFi. The suspension of withdrawals at Blockfills has raised concerns about the broader health of the cryptocurrency market. The sector has been grappling with bearish conditions since early 2026, with Bitcoin and Ethereum trading well below recent highs. This lackluster performance reflects investor caution and ongoing volatility, despite periodic rallies. Blockfills’ situation underscores the risks inherent in institutional lending and borrowing desks within the crypto industry. Blockfills’ story is particularly notable given its strong performance prior to the downturn. The platform serves over 2,000 institutional clients, including hedge funds and asset managers, and boasts one of the most active desks in the crypto sector. Its $37 million Series A round in January 2022, led by Susquehanna Private Equity Investments and other prominent firms, had positioned it as a key player in the institutional crypto space. The challenges faced by Blockfills highlight the cyclical nature of cryptocurrency markets and the vulnerabilities that even well-funded platforms can face during prolonged bearish periods. As the industry continues to navigate these uncertain conditions, questions about liquidity management and risk mitigation will remain critical for all market participants.

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Originally published on CoinDesk on 2/19/2026