Blockfill Wobbles?

Here’s a worrying moment which comes just at the point where crypto is trying to push for its mega legislation in DC. What’s more Blockfills doesn’t look like your average crypto bro kiddie store. Anyway, it’s not good, even if only a glitch:

A Crypto Lender Has Halted Withdrawals: Is This Another FTX Moment?
Yahoo Finance
Susquehanna-Backed Crypto Lender BlockFills Halts Client Withdrawals
FT
Crypto news: BlockFills Halts Withdrawals, Restricts Trading, According To Reports
CoinDesk
CME-Backed Crypto Lender BlockFills Halts Withdrawals, Says It’s Working To Restore Liquidity
The Block

Instructive here is the aura of panic. Crypto has - as noted here and in EI for the past 2 years - been struggling to raise mega VC. Too many projects are under funded. Far too many are bleeding like a gushing artery in a Tarantino movie. This could turn coyote ugly, even if BlockFills turns out to be a resolvable moment. Winter is coming - presuming it’s not already here.

News Bankers Push OCC To Slow Crypto Trust Charters Until GENIUS Rules Clarified (Cointelegraph) / US Banks Urge Regulator To Slow Crypto-Linked Charters Amid Rule Overhaul (Decrypt) will hardly be reverse until Blockfills and related problems are clearly resolved.

Crypto has a welter of problems right now and likewise the digital asset industry needs to be very very careful, these are precarious times: On ‘From the Block,’ Experts Warn Crypto Must Fix Scams And User Errors Before Scaling (PYMNTS).

At the same time, some remain optimistic: Crypto’s $2 Trillion Crash Hasn’t Dimmed Outlook In Hong Kong (Bloomberg) as SFC Launches Trading Initiatives To Boost Digital Asset Market Vibrancy In Hong Kong (SFC).

Back to BlockFills, any delay in payments from a regulated institution causes concern. Is BlockFills predicament a glitch, a wrinkle in one company, or possibly evidence of a systemwide meltdown in an endangered cryptosphere?

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