A US federal judge has issued a temporary restraining order (TRO) against cryptocurrency lender BlockFills in a lawsuit brought by Dominion Capital, temporarily freezing assets linked to the dispute, according to a document seen by CoinDesk.
In a complaint dated February 27, Dominion alleged that BlockFills misappropriated and illegally retained millions of dollars in customer crypto assets, commingled customer assets, and concealed large losses.
Dominion claimed that 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 requested an asset freeze to protect its cryptocurrencies trapped on the 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 prohibited the company from transferring or disposing of 70.6 bitcoins. allegedly belonging to Dominion, or moving assets out of the United States as the case progresses.
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 potential preliminary injunction.
CoinDesk reported last month that the cryptocurrency lender had incurred losses of around $75 million during the recent market crash and was looking for a buyer or emergency financing.
BlockFills is a Chicago-based cryptocurrency trading and lending company that provides liquidity, financing, and risk management services to institutional clients. Its platform facilitates cryptocurrency 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 that, as a matter of policy, the company does not comment on pending litigation. Dominion Capital declined to comment.
A temporary restraining order in the US is an emergency court order that temporarily prevents someone from taking a specific action until the court can hold a full hearing. It is commonly used in legal disputes involving money, assets, or financial activities to prevent immediate harm.
The TRO was issued without notice to BlockFills, with the court citing a risk of “immediate and irreparable harm,” noting that the company had suspended customer withdrawals and that insolvency could be imminent.
BlockFills must respond by March 17, when the temporary order will expire unless the court extends it.
Dominion Capital is a New York-based private investment firm and family office that invests in private equity, structured finance, and digital assets, including supporting bitcoin mining companies such as Bitfarms (BITF).
difficult times
Blockfills said it would pause customer withdrawals and deposits on February 11 due to recent financial and market conditions.
The company said at the time that it was working with investors and customers to reach a quick resolution and restore liquidity to the platform. CoinDesk subsequently learned that the cryptocurrency lender had incurred losses of around $75 million in the recent market crash and was seeking a buyer or emergency financing.
CoinDesk also reported that Nicholas Hammer, co-founder and CEO of Blockfills, has resigned from his leadership position. The company’s website now lists Joseph Perry as interim CEO.
Blockfills said it processed more than $60 billion in trading volume in 2025, a 28% increase from the previous year, and is among the most active institutional cryptocurrency lending and borrowing desks. It serves about 2,000 institutional clients, including hedge funds, asset managers and mining companies.
“The company is now headed for bankruptcy,” according to insolvency expert Thomas Brazil, founder of 117 Partners.
“After something like this, no serious institution touches the platform,” Brazil said. “They will have to declare bankruptcy.”
The New York Law Journal first reported on Dominion’s complaint on Monday.
Read more: Blockfills Co-Founder and CEO Nicholas Hammer Has Resigned
