U.S. Court Freezes BlockFills Assets in Bitcoin Dispute With Dominion Capital

BlockFills is a Chicago-based cryptocurrency trading and lending firm serving primarily institutional investors. It suspended customer deposits and withdrawals on February 6, 2026, because of market and financial conditions. Creditor Dominion Capital claims that about 70.6 Bitcoin constitute assets belonging to its clients. Citing concerns that BlockFills may have misappropriated funds and become unable to meet its obligations, Dominion asked the court to preserve the assets.

Dominion Capital filed suit in the U.S. District Court for the Southern District of New York on February 27, 2026. Judge Mary Kay Vyskocil issued a temporary restraining order on March 3, freezing the 70.6 Bitcoin at issue and directing BlockFills to segregate client assets and verify where they had been transferred. The plaintiff was also required to post a $123,000 bond, and the order was initially set to expire on March 17.