U.S. judge freezes BlockFills assets in dispute over 70 bitcoin with creditor Dominion Capital
A New York federal court barred the crypto trading firm from moving bitcoin tied to Dominion Capital, citing suspended withdrawals and insolvency concerns.
By Will Canny, Ian Allison|Edited by Nikhilesh De Mar 5, 2026, 6:59 p.m.
Make us preferred on Google
What to know:
- A U.S. judge issued a temporary restraining order freezing 70.6 BTC allegedly belonging to Dominion Capital and blocking crypto lender BlockFills from moving assets abroad.
- The court ordered BlockFills to account for and segregate customer funds.
- The order comes after BlockFills suspended withdrawals and racked up roughly $75 million in losses, as insolvency concerns grow and the firm seeks a buyer.
A U.S. federal judge has issued a temporary restraining order (TRO) against crypto lender BlockFills in a lawsuit brought by Dominion Capital, temporarily freezing assets tied to the dispute, according to a filing seen by CoinDesk.
In a complaint dated February 27, Dominion alleged that BlockFills misappropriated and unlawfully retained millions of dollars’ worth of customer crypto assets, commingled client assets and concealed heavy losses.
Dominion claimed BlockFills concealed the misuse of customer funds and refused to return the company's assets after suspending withdrawals in February. As part of the complaint, the investment firm sought an asset freeze to protect its crypto trapped on Blockfills' platform, which was granted by the court.
In an order filed March 3 in the U.S. District Court for the Southern District of New York, federal Judge Mary Kay Vyskocil barred the firm from transferring or disposing of 70.6 bitcoin BTC$70,867.63 allegedly belonging to Dominion, or moving assets outside the United States while the case proceeds.
The court also ordered Blockfills, which is backed by trading giant Susquehanna, to account for and segregate customer funds, including Dominion’s bitcoin, pending a hearing on a possible preliminary injunction.
CoinDesk reported last month that the crypto lender had incurred losses of around $75 million during the recent market downturn, and was looking for a buyer or emergency funding
BlockFills is a Chicago-based crypto trading and lending firm that provides liquidity, financing and risk-management services to institutional clients. Its platform facilitates crypto lending and borrowing, derivatives trading and over-the-counter (OTC) execution for hedge funds, asset managers, market makers and mining companies.
A Blockfills spokesperson said as a matter of policy the firm does not comment on pending litigation. Dominion Capital declined to comment.
A temporary restraining order in the U.S. is an emergency court order that temporarily stops someone from taking a specific action until the court can hold a full hearing. It’s commonly used in legal disputes involving money, assets or financial activity to prevent immediate harm.
The TRO was issued without notice to BlockFills, with the court citing a risk of “immediate and irreparable injury,” noting the firm had suspended client withdrawals and that insolvency could be imminent.
BlockFills must respond by March 17, when the temporary order is set to expire unless extended by the court.
Dominion Capital is a New York-based private investment firm and family office that invests across private equity, structured finance and digital assets, including backing bitcoin mining companies such as Bitfarms (BITF).
Tough times
Blockfills said it was halting customer withdrawals and deposits on Feb. 11 due to recent market and financial conditions.
The firm said at the time that it was working with investors and clients to reach a swift resolution and restore liquidity to the platform. CoinDesk subsequently learned that the crypto lender had incurred losses of around $75 million in the recent market downturn and was seeking a buyer or emergency funding.
CoinDesk also reported that Nicholas Hammer, co-founder and CEO of Blockfills, has stepped down from his leadership role. The firm's website now lists Joseph Perry as the interim CEO.
Blockfills said it processed over $60 billion in trading volume in 2025, a 28% increase from the prior year, and is among the more active institutional crypto lending and borrowing desks. It serves about 2,000 institutional clients, including hedge funds, asset managers and mining firms.
"The company is now hurtling towards bankruptcy," according to insolvency professional Thomas Braziel, founder of 117 Partners.
“After something like this, no serious institution is touching the platform," Braziel said. "They are going to have to file for bankruptcy."
The New York Law Journal first reported news of the Dominion complaint on Wednesday.
Read more: Blockfills co-founder and CEO Nicholas Hammer has stepped down
BlockFillsCrypto LendingLegalExclusive Breaking NewsMore For You
Pudgy Penguins: Challenging the Pokemon and Disney Legacy in the Global IP Race
By CoinDesk ResearchFeb 27, 2026
Commissioned byPudgy Penguins
CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events.
What to know:
- Disrupting a Stagnant Market: Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product.
More For You
Son of U.S. government contractor, accused of stealing millions in seized crypto, arrested in France
By Olivier Acuna|Edited by Nikhilesh De1 hour ago
John “Lick” Daghita was arrested in a joint FBI-France operation after allegations he siphoned tens of millions of dollars in crypto from government seizure wallets managed by his father’s company.
What to know:
- French and U.S. authorities arrested John "Lick" Daghita on the island of Saint Martin on Wednesday, alleging he stole tens of millions of dollars in cryptocurrency from the U.S. government.
- The arrest follows a monthslong U.S. Marshals Service investigation into claims that Daghita, whose father runs a government contractor managing seized crypto, diverted more than $46 million from government seizure wallets.
- The probe began after blockchain investigator ZachXBT alleged that Daghita controlled a wallet holding roughly 12,540 ETH, and U.S. officials are now expected to seek his extradition as the case moves forward.
Son of U.S. government contractor, accused of stealing millions in seized crypto, arrested in France
1 hour agoSanctions evasions using crypto increased by 700% in 2025: Chainalysis
2 hours ago
CleanSpark sold 97% of February bitcoin production to fund AI pivot
2 hours ago
Crypto for Advisors: Tokenization offers always-on global investment access
3 hours ago
Bitcoin pulls back to near $71,000 even as software sector soars
3 hours ago
CoinDesk 20 performance update: Stellar (XLM) drops 3.5% as nearly all assets decline
4 hours agoTop Stories
New York Stock Exchange owner values crypto exchange OKX at $25 billion in new partnership
6 hours agoTrump-backed American Bitcoin board members scoop up stock following earnings
7 hours ago
Bitcoin traders, alert: The rally is nearing a two-year 'make or break' price zone
11 hours agoAndreessen Horowitz crypto arm said to seek $2 billion for fifth fund: Fortune
7 hours ago
Bitcoin takes aim at $74,000. Surprisingly, the dollar's rallying too.
6 hours agoSky token jumps 10% after governance vote causes bullish tilt in market dynamics
13 hours agoIn this article
BTCBTC$70,867.63◢3.81%
