Nicholas Hammer, co-founder and CEO of crypto lender Blockfills, has stepped down from his leadership position following significant financial losses, according to a person with direct knowledge of the matter. The Chicago-based firm suffered approximately $75 million in losses and suspended client deposits and withdrawals earlier this month due to recent market and financial conditions.
Joseph Perry has assumed the role of interim CEO at Blockfills, as listed on the firm’s website. The leadership change comes as the cryptocurrency lending sector continues to face operational and financial challenges in an increasingly volatile market environment.
Blockfills, which processed over $60 billion in trading volume during 2025, has been significantly impacted by broader market downturns. The platform’s decision to halt deposits and withdrawals on February 11 marked a critical moment for the lending service and its user base.
According to the source, some clients were advised to withdraw their assets before the platform froze deposits and withdrawals. This selective notification has raised questions about the timing of communications to different user groups during the crisis period.
The cryptocurrency lending sector has faced mounting scrutiny following several high-profile collapses and financial difficulties in recent years. Blockfills’ situation reflects ongoing challenges that digital asset lending platforms face when managing market volatility and operational risks.
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The firm is reportedly seeking a buyer as it navigates the aftermath of these substantial losses. The search for potential acquirers indicates that Blockfills’ leadership is pursuing options to stabilize operations and protect remaining client assets.
Hammer’s departure from the CEO position represents a significant shift in the company’s leadership structure. His role in founding Blockfills and guiding its growth to become a major player in crypto trading volumes makes his exit particularly notable within the industry.
The $75 million in losses represents a substantial blow to the platform’s operations and financial stability. These losses underscore the risks inherent in cryptocurrency lending, where exposure to market movements and counterparty risks can accumulate rapidly.
Blockfills’ suspension of client services has directly impacted users who relied on the platform for trading and lending activities. The freeze on deposits and withdrawals has left many participants unable to access or move their digital assets during a critical period.
The timing of these events, occurring in February 2026, shows the ongoing volatility that goes along with crypto markets. Market downturns have historically stressed lending platforms and forced operational adjustments across the industry.
The platform’s struggle to maintain operations despite high 2025 trading volumes demonstrates that transaction volume alone does not guarantee financial stability.
Also, Perry’s appointment as interim CEO suggests the company is seeking fresh leadership to address operational challenges and explore strategic alternatives. His background and approach will be closely watched by everyone.
Blockfills’ predicament highlights the importance of risk management and financial prudence in cryptocurrency lending operations. The company’s substantial losses raise questions about how the platform managed exposure during the period leading up to its operational suspension.
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