A U.S. judge has temporarily frozen 70.6 Bitcoin tied to BlockFills and ordered the company to fully segregate customer funds after Dominion Capital accused the platform of misappropriating and commingling client assets, according to a court filing.
Dominion’s complaint, filed on Feb. 27, alleges BlockFills unlawfully retained millions in customer crypto and used commingled funds to cover losses. The court issued a temporary restraining order (TRO) for 70.6 BTC — roughly $5 million — currently held by BlockFills, which Dominion says belongs to it. The TRO was granted without prior notice to the defendant after the court found Dominion demonstrated a risk of immediate and irreparable harm.
BlockFills must respond to the order by March 17, 2026. The ruling follows BlockFills’ decision to halt customer deposits and withdrawals on Feb. 11 amid a crypto market correction and Bitcoin’s slide to about $60,000. BlockFills said the pause aimed to protect clients and restore liquidity, and said management was working with investors and clients to resolve the issue while allowing clients to open and close existing spot and derivatives positions.
The freeze affects an institutional client base of roughly 2,000 firms, including asset managers and hedge funds. BlockFills reported $60 billion in trading volume in 2025. The Chicago-based firm serves professional traders, hedge funds and asset managers and requires minimum commitments — reportedly $10 million — for certain services such as its options products.
Dominion Capital is a New York investment firm founded in 2011, focused on private equity, structured finance and real estate investments.
The dispute adds to industry scrutiny as platforms manage liquidity and custody risks amid volatile markets. Cointelegraph notes the reporting is based on court filings and company statements; parties involved will continue to litigate the underlying claims.