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 court papers. Dominion’s complaint, filed 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 the 70.6 BTC — roughly $5 million — that Dominion says it owns. The TRO was granted without prior notice to BlockFills after the judge found Dominion demonstrated a risk of immediate and irreparable harm. BlockFills has been ordered to segregate customer assets and must respond to the order by March 17, 2026.
BlockFills halted customer deposits and withdrawals on Feb. 11 amid a broader crypto market correction and a decline in Bitcoin to about $60,000. The company said the pause was intended to protect clients and restore liquidity, and that management was working with investors and clients to resolve the situation. BlockFills also said clients remained able to open and close existing spot and derivatives positions while deposits and withdrawals were suspended.
The freeze affects an institutional client base of about 2,000 firms, including asset managers and hedge funds. BlockFills, a Chicago-based trading venue for professional traders and institutional clients, reported $60 billion in trading volume in 2025. The firm is known to require minimum commitments — reportedly $10 million — for certain services such as its options products.
Dominion Capital, the plaintiff, is a New York investment firm founded in 2011 that focuses on private equity, structured finance and real estate investments.
The dispute highlights ongoing industry scrutiny of liquidity management and custody practices as platforms navigate volatile markets. Reporting is based on court filings and company statements; the parties are expected to continue litigating the underlying claims.