A U.S. Judge has frozen 70.6 Bitcoin, worth approximately $5 million, tied to the institutional crypto firm BlockFills. The order, issued after a complaint from Dominion Capital, mandates a full accounting of customer funds and alleges the company misappropriated assets and commingled funds. This legal action follows BlockFills’ decision to halt customer withdrawals in February, citing market conditions.
A U.S. Judge has temporarily frozen 70.6 Bitcoin tied to BlockFills and ordered a full accounting of customer funds. The action comes after Dominion Capital accused the cryptocurrency lending and trading company of misappropriating customer assets and commingling funds, according to a court filing.
Judge Mary Kay Vyskocil issued a temporary restraining order for the Bitcoin, valued at about $5 million. Dominion Capital claims the assets belong to it, as stated in a Tuesday court filing. The TRO was granted without notice because Dominion showed the “immediate and irreparable injury, loss, or damage” that could occur.
The order was issued three weeks after BlockFills halted customer withdrawals in February. The company announced the halt amid a broader crypto market correction as Bitcoin declined to $60,000.
BlockFills stated it stopped withdrawals to protect clients and restore platform liquidity. “Management has been working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform,” the company wrote.
The decision impacted around 2,000 institutional clients, including asset managers and hedge funds. These clients contributed to the $60 billion in trading volume the company logged in 2025, according to its annual report.
Chicago-based BlockFills is an institutional-focused platform serving professional traders with high minimums. Dominion Capital is a New York-based investment company founded in 2011, focusing on private equity and structured finance.
BlockFills must respond to the court order by March 17, 2026. The full complaint was filed on February 27.
