Judge freezes 71 Bitcoin in BlockFills case over customer fund claims

A federal judge froze 70.6 Bitcoin tied to BlockFills after Dominion Capital alleged customer fund misuse and sought the return of disputed assets.

A US judge has temporarily frozen 70.6 Bitcoin tied to crypto lending and trading firm BlockFills and ordered an accounting of segregated customer funds after Dominion Capital accused the company of misappropriating customer assets and commingling funds, according to a court filing.

The complaint, filed Feb. 27, alleges that BlockFills unlawfully retained millions of dollars in customer crypto assets and used commingled funds to cover losses. Judge Mary Kay Vyskocil issued a temporary restraining order (TRO) for 70.6 Bitcoin (BTC), worth about $5 million, currently held by BlockFills, which Dominion is claiming, according to a Tuesday court filing.

BlockFills must respond to the court order by March 17, 2026. The order comes three weeks after BlockFills halted withdrawals in February.

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