A U.S. federal choose has issued a short lived restraining order (TRO) in opposition to crypto financier Blockfils in a lawsuit introduced by Dominion Capital, briefly freezing property associated to the dispute, in accordance with a submitting obtained by CoinDesk.
In its February 27 criticism, Dominion alleged that Blockfils misappropriated and illegally retained hundreds of thousands of {dollars} value of buyer crypto property, commingled buyer property, and hid vital losses.
Dominion alleged that Blockfils hid the misuse of buyer funds and refused to return the corporate’s property even after suspending withdrawals in February. As a part of the criticism, the funding agency sought, and the court docket granted, an asset freeze to guard the cryptocurrencies locked up on Blockfils’ platform.
In an order filed within the U.S. District Court docket for the Southern District of New York on March 3, Federal Decide Mary Kay Viscosil prohibited the corporate from transferring or disposing of 70.6 bitcoins. BTC$70,867.63 They’re suspected of both belonging to Dominion or shifting property out of america whereas the case is pending.
The court docket additionally ordered Blockfils, backed by buying and selling large Susquehanna, to account for and segregate buyer funds, together with Dominion’s Bitcoin, pending a listening to on a potential preliminary injunction.
CoinDesk reported final month that the crypto financier had misplaced about $75 million within the current market downturn and was in search of a purchaser or emergency funds.
BlockFills is a Chicago-based cryptocurrency buying and selling and lending firm that gives liquidity, funding, and danger administration providers to institutional traders. Its platform facilitates cryptocurrency lending, derivatives buying and selling, and over-the-counter (OTC) execution for hedge funds, asset managers, market makers, and mining firms.
A Blockfills spokesperson mentioned that as a matter of coverage, the corporate doesn’t touch upon pending litigation. Dominion Capital declined to remark.
A short lived restraining order in america is an emergency court docket order that briefly stops somebody from taking sure actions till the court docket has a full listening to. It’s typically utilized in authorized disputes involving cash, property, or monetary actions to stop imminent hurt.
The TRO was issued with out notifying BlockFills, and the court docket cited the danger of “speedy and irreparable hurt,” noting that the corporate had suspended buyer withdrawals and that chapter may very well be imminent.
BlockFills should reply by March 17, when the interim order expires until prolonged by the court docket.
Dominion Capital is a New York-based personal funding agency and household workplace that invests throughout personal fairness, structured finance, and digital property, together with backing Bitcoin mining firms similar to BitFarm (BITF).
robust instances
Blockfills introduced that it’s going to droop buyer withdrawals and deposits on February eleventh attributable to current market and monetary circumstances.
The corporate mentioned on the time that it was working with traders and clients for a swift decision and restoring liquidity to the platform. CoinDesk has since realized that the crypto lender has suffered losses of roughly $75 million within the current market downturn and is in search of a purchaser or emergency funds.
CoinDesk additionally reported that Blockfills co-founder and CEO Nicholas Hammer has stepped down from his management function. The corporate’s web site lists Joseph Perry as interim CEO.
Blockfills mentioned it processed greater than $60 billion in buying and selling quantity in 2025, up 28% year-over-year, making it probably the most lively institutional crypto lending and borrowing desks. It serves roughly 2,000 institutional purchasers, together with hedge funds, asset administration firms, and mining firms.
“The corporate is now hurtling in the direction of chapter,” mentioned Thomas Brazil, a chapter skilled and founding father of 117 Companions.
“After occasions like this, critical establishments stopped touching the platform,” Brazil mentioned. “They will should file for chapter.”
The New York Legislation Journal first reported information of Dominion’s expenses on Wednesday.
learn extra: Blockfills co-founder and CEO Nicholas Hammer has resigned.
