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Crypto lending’s boom-to-bust cycle is claiming another pair of casualties.
First, ZeroLend, a multi-chain decentralized lending protocol built on zkSync, a Layer-2 scaling network for Ethereum (ETH), announced on Feb. 18 that it will wind down operations.
The protocol, which emerged during the 2020–2021 bull market lending frenzy, cited sustainability challenges and prolonged operating losses.
Now, on the centralized side of the market, Chicago-based Blockfills is reportedly up for sale. This comes just days after it reported halting withdrawals.
Related: Another crypto lender shuts down, leaves behind a teary note
Crypto lending became popular during the 2020–2021 rally. At that time, borrowing and lending against digital assets promised speed and accessibility that traditional finance could not match.
Retail and institutional players embraced yield opportunities and flexible credit lines.
Blockfills became one of the more active institutional desks in the space. Backed by trading giant Susquehanna, the firm serves around 2,000 institutional clients, including hedge funds, asset managers and mining companies.
In 2025, it transacted more than $60 billion in trading volume, a 28% increase from 2024.
But last week, the company suspended deposits and withdrawals.
In a Feb. 11 press release, management said it was working with investors and clients to achieve a “swift resolution” and restore liquidity. Clients can still open and close positions in spot and derivatives markets under certain circumstances, suggesting the platform remains partially operational.
However, behind the scenes, the firm is reportedly exploring a potential sale.
The sale comes after the lender incurred roughly $75 million in losses during the recent market downturn, CoinDesk reported, citing two anonymous sources.
A spokesperson from Blockfills informed TheStreet Roundtable that the suspension of withdrawals was still in place, but refused to comment on the reports of a potential sale.
The reported losses come amid a sluggish start to 2026 for digital assets.
Macro uncertainty from Federal Reserve policy shifts to geopolitical tensions has tightened liquidity and dampened risk appetite.
Institutional lending desks, which depend heavily on collateral values and steady market flows, are particularly exposed during prolonged drawdowns.
