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U.S. Judge Freezes 70.6 BTC in BlockFills Case, Orders Segregation of Client Funds

The order followed Dominion Capital's claims of commingled assets alongside withheld withdrawals.

Overview

  • Judge Mary Kay Vyskocil issued a temporary restraining order on March 3 that bars transfers of roughly 70.6 BTC tied to Dominion Capital and prohibits moving related assets outside the United States.
  • The court directed BlockFills to segregate customer funds, account for Dominion’s holdings, and preserve the assets pending a potential preliminary injunction.
  • The TRO was granted without notice, with the judge citing immediate and irreparable injury risks given suspended client access and potential imminent insolvency.
  • BlockFills must respond by March 17, when the temporary order could expire unless extended as the litigation advances.
  • The case follows the firm’s Feb. 11 halt of deposits and withdrawals and reports of about $75 million in lending losses, leadership changes, and efforts to secure a buyer or emergency financing.