 ▲ Bitcoin (BTC), decline, cryptocurrency fear / ChatGPT-generated image |
Nouriel Roubini, the New York University professor known as “Dr. Doom” for predicting economic crises, launched a fierce attack on the entire cryptocurrency market, labeling it a scam in the wake of a recent suspension of withdrawals by a digital asset platform.
According to cryptocurrency media outlet U.Today on February 12 (local time), Roubini moved swiftly to criticize the industry after BlockFills, a digital asset trading firm backed by Susquehanna, abruptly halted customer withdrawals. He argued that the incident starkly exposes the chronic opacity and structural flaws of the cryptocurrency ecosystem. The market has been left reeling, as even a firm supported by a major investment company has fallen into a liquidity crisis.
Roubini has long been an outspoken critic of cryptocurrencies, including Bitcoin (BTC), dismissing them as bubbles devoid of intrinsic value. Referring to the BlockFills case on his social media account, he claimed the crypto industry is fundamentally corrupt and that all related firms will ultimately face a chain of bankruptcies. He particularly emphasized the urgent need for strong legal action to protect investors, accusing regulators of neglecting these risks. His criticism is spreading into broader distrust of major assets such as XRP and Ethereum (ETH).
BlockFills, which suspended withdrawals, manages approximately $60 billion in assets and serves around 2,000 institutional investors worldwide, making it a heavyweight platform in the industry. The company announced that it would temporarily suspend deposit and withdrawal services, citing recent market volatility and financial conditions. However, Roubini intensified his criticism, calling it clear evidence that the entire market is collapsing. While the company stated it is working to restore liquidity, it has not provided a specific timeline for resuming full services.
Market experts note that the incident occurred amid a downturn in which Bitcoin’s price is threatening to fall below the $60,000 level. Bitcoin has declined sharply from its peak, fueling concerns about entering a bear market, and BlockFills’ asset freeze has revived memories of the market panic during the FTX collapse. Among retail investors, there is a growing movement to transfer assets from exchanges to private wallets, raising fears that overall market liquidity could tighten further.
Currently, BlockFills continues to support some trading functions but has strictly blocked external withdrawals of assets. Industry observers are watching closely to see whether Roubini’s warning will prove to be more than pessimism and serve as a signal of sweeping structural restructuring in the cryptocurrency market. While digital asset firms are striving to restore trust through transparent financial disclosures, investor sentiment, once frozen, has shown little sign of recovery.
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