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A US Judge has temporarily frozen 70.6 Bitcoin tied to cryptocurrency lending and trading institution BlockFills and ordered a afloat segregated relationship of lawsuit funds aft Dominion Capital accused the institution of misappropriating lawsuit assets and commingling funds, according to a tribunal filing.
The complaint, filed Feb. 27, alleges that BlockFills unlawfully retained millions of dollars successful lawsuit crypto assets and utilized commingled funds to screen losses. Judge Mary Kay Vyskocil issued a impermanent restraining bid (TRO) for 70.6 Bitcoin (BTC), worthy astir $5 million, presently held by BlockFills, which Dominion says belongs to it, according to a Tuesday tribunal filing.
BlockFills indispensable respond to the tribunal bid by March 17, 2026. The bid comes 3 weeks aft BlockFills halted withdrawals successful February.
Dominion Capital VS BlockFills, March 3 tribunal filing. Source: assets.alm.comThe TRO was issued against the suspect without announcement due to the fact that Dominion Capital intelligibly showed the “immediate and irreparable injury, loss, oregon damage” that volition effect to the plaintiff earlier the suspect whitethorn beryllium heard successful opposition, the filing reads.
BlockFills halts idiosyncratic withdrawals amid Bitcoin crash
BlockFills announced a halt to lawsuit deposits and withdrawals amid the broader crypto marketplace correction connected Feb. 11.
The institution said it decided to halt withdrawals to support clients and reconstruct liquidity connected the level pursuing Bitcoin’s diminution to $60,000.
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“Management has been moving manus successful manus with investors and clients to bring this contented to a swift solution and to reconstruct liquidity to the platform,” wrote BlockFills successful the statement, adding that clients person been capable to unfastened and adjacent their existing spot and derivatives positions.
Source: BlockFillsThe determination impacted astir 2,000 organization clients, including plus managers and hedge funds that contributed to the $60 cardinal trading measurement logged connected BlockFills successful 2025, according to its yearly report.
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Chicago-based BlockFills is an institutional-focused level serving nonrecreational traders, hedge funds and plus managers, with a minimum $10 cardinal threshold for definite services, including its Options Products.
Dominion Capital is simply a New York-based concern institution founded successful 2011, chiefly focusing connected backstage equity, structured concern and existent property investments.
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