A US court has temporarily frozen 70.6 bitcoins linked to cryptocurrency lending and trading firm BlockFills and ordered a full account of customer funds after Dominion Capital accused the company of misappropriating customer assets and pooling funds, according to a court filing.
The complaint, filed on February 27, alleges that BlockFills illegally held millions of dollars in customers’ crypto assets and used the commingled funds to cover losses. Judge Mary Kay Viscosil issued a temporary restraining order (TRO) for 70.6 bitcoins (BTC), worth about $5 million, currently held by BlockFills, which Dominion says it owns, according to a filing on Tuesday.
BlockFills has until March 17, 2026 to respond to the court order. The order comes three weeks after BlockFills was suspended in February.
The TRO against the defendant was granted without notice because Dominion Capital clearly demonstrated “immediate and irreparable injury, loss or damage” to the plaintiff before the defendant could be heard in opposition, the filing said.
BlockFills Stops User Withdrawals Amid Bitcoin Crash
BlockFills announced on February 11 that customer deposits and withdrawals have stopped amid a broader correction in the cryptocurrency market.
The company said it decided to stop withdrawing money to protect customers and restore liquidity on the platform after Bitcoin fell to $60,000.
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“Management has been working with investors and customers to quickly resolve this issue and restore liquidity to the platform,” BlockFills wrote in a statement, adding that customers were able to open and close their existing spot and derivatives positions.
According to its annual report, the decision affected approximately 2,000 institutional clients, including asset managers and hedge funds, which contributed to the $60 billion trade volume recorded on BlockFills in 2025.
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Chicago-based BlockFills is an institutional-focused platform that serves professional traders, hedge funds and asset managers with a minimum of $10 million for certain services, including its Options Product.
Dominion Capital is a New York-based investment firm founded in 2011 that focuses primarily on private equity, structured finance and real estate investments.
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