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A U.S. federal judge has issued a temporary restraining order (TRO) against crypto trading and lending firm BlockFills, freezing bitcoin assets tied to an ongoing lawsuit filed by investment firm Dominion Capital. The court order, filed March 3 in the U.S. District Court for the Southern District of New York, prevents BlockFills from transferring or disposing of 70.6 bitcoin allegedly belonging to Dominion while the legal dispute proceeds.
Dominion Capital filed its complaint on February 27, accusing BlockFills of misappropriating millions of dollars in customer crypto assets. According to the lawsuit, the Chicago-based crypto lender unlawfully retained funds, commingled client assets, and concealed substantial financial losses. Dominion also alleged that BlockFills refused to return its assets after suspending withdrawals on the platform earlier this year.
Judge Mary Kay Vyskocil granted Dominion’s request for an emergency asset freeze, citing the risk of “immediate and irreparable injury.” The order temporarily blocks BlockFills from moving Dominion’s bitcoin or transferring assets outside the United States. In addition, the court instructed the company to account for and segregate all customer funds, including the bitcoin belonging to Dominion, until a hearing determines whether a longer-term preliminary injunction should be issued.
A temporary restraining order is an emergency legal measure commonly used in financial disputes to prevent parties from moving or hiding assets before a full court hearing. In this case, the TRO was issued without prior notice to BlockFills because of concerns that the firm’s financial condition could worsen before the court could intervene.
The legal dispute follows mounting financial pressure on BlockFills. Reports indicate the company suffered roughly $75 million in losses during the recent crypto market downturn. The firm is reportedly seeking a buyer or emergency funding as it attempts to stabilize operations.
BlockFills halted customer deposits and withdrawals on February 11, citing difficult market and financial conditions. The platform provides liquidity, financing, derivatives trading, and over-the-counter crypto services to institutional clients such as hedge funds, asset managers, market makers, and bitcoin mining companies.
The company, backed by trading giant Susquehanna, processed more than $60 billion in trading volume in 2025 and serves around 2,000 institutional clients worldwide. However, the recent suspension of withdrawals has raised concerns about its financial stability.
Nicholas Hammer, co-founder and former CEO of BlockFills, has stepped down from his leadership role. The company’s website now lists Joseph Perry as interim CEO. BlockFills has declined to comment on the lawsuit, citing its policy not to discuss ongoing litigation, while Dominion Capital has also declined public comment.
Legal experts say the case could have significant implications for institutional crypto lending platforms. Insolvency specialist Thomas Braziel of 117 Partners warned that the firm may be heading toward bankruptcy, suggesting institutional clients are unlikely to continue using the platform amid the ongoing legal and financial uncertainty.
The temporary restraining order is scheduled to expire on March 17 unless the court decides to extend it following further hearings in the case.
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