{"id":78745,"date":"2026-09-27T20:02:08","date_gmt":"2026-09-27T20:02:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/blockstream-addresses-6-7m-river-lawsuit\/"},"modified":"2026-09-27T20:02:08","modified_gmt":"2026-09-27T20:02:08","slug":"blockstream-addresses-6-7m-river-lawsuit","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/blockstream-addresses-6-7m-river-lawsuit\/","title":{"rendered":"Blockstream Addresses $6.7M River Lawsuit"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">River Financial sued Blockstream Services Canada ULC on Sept. 11, 2026, seeking about $6.7 million.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blockstream Corp said Sept. 26 the U.S. and Canada services firms left its control in mid-2024.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blockstream Mining kept the licensed name after the April 2025 public spin-out announcement.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>River\u2019s $6.7 Million Lawsuit<\/h2>\n<p>On Sept. 11, a San Francisco bitcoin firm walked into federal court <a href=\"https:\/\/www.pacermonitor.com\/public\/case\/66825141\/River_Financial_Inc_v_Blockstream_Services_Canada,_ULC\" target=\"_blank\" rel=\"noopener noreferrer\">and sued a company<\/a> still wearing the Blockstream name for $6.7 million. Fifteen days later, Blockstream Corp, led by Adam Back and creators of the Liquid Network, posted a statement that read like a disclaimer after the fact.<\/p>\n<p>The news follows the Liquid Network breach, which <a href=\"https:\/\/news.bitcoin.com\/security\/we-are-whitehats-nearly-4000-btc-drained-from-blockstreams-liquid-peg\/\">saw nearly 4,000 BTC siphoned<\/a> from the protocol earlier this month on Sept. 6. The attackers gave 3,400 BTC back but still have not returned nearly 600 BTC, despite <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/return-the-bitcoin-blockstream-draws-line-after-4000-btc-hack\/\">Blockstream\u2019s demands<\/a>.<\/p>\n<p>The Canada and U.S. services units, it said, have not been under its ownership, control or management since mid-2024. They kept the brand under license. The public spin-out of Blockstream Mining was announced in April 2025. River\u2019s complaint names Blockstream Services Canada ULC, not the parent.<\/p>\n<h2>A Bill With the Wrong Famous Name<\/h2>\n<p><a href=\"https:\/\/news.bitcoin.com\/river-ceo-businesses-increasingly-buying-bitcoin\/\">River Financial<\/a>\u2019s complaint, filed in the Northern District of California, alleges breach of a termination agreement. River says the deal called for $3.55 million in prepaid refunds and a $3.15 million early-termination payment. First-pass headlines on social media flattened the defendant into \u201cBlockstream.\u201d Some crypto outlets on X later corrected the record. This is because the sued firm is Blockstream Services Canada ULC, a mining operator that now runs as an independent company. Bitcoin.com News <a href=\"https:\/\/news.bitcoin.com\/blockstream-spins-out-mining-and-asic-divisions-in-major-restructuring-effort\/\">reported on the mining company spin-off<\/a> in May 2025.<\/p>\n<h2>Blockstream\u2019s Statement<\/h2>\n<p>On Sept. 26, Blockstream Corp <a href=\"https:\/\/x.com\/Blockstream\/status\/2103899502847631486?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">posted this message in full<\/a>:<\/p>\n<blockquote>\n<p>\u201cSince mid-2024, Blockstream Services USA and Blockstream Services Canada have not been under the ownership, control, or management of Blockstream Corp. The businesses were spun out as part of the Blockstream Mining business and have since operated as separate companies, with no shared equity ownership or management with Blockstream Corp. Following the separation, they retained the Blockstream name for a limited period under a brand licensing agreement.\u201d<\/p>\n<\/blockquote>\n<p>Here\u2019s the caveat. That mid-2024 date sits almost a year before the April 2025 announcements that introduced Blockstream Mining as a newly independent company, with former mining president Chris Cook as CEO. The Blockstream Mining brand stayed on the door. Blockstream\u2019s statement caught some flak from the community. \u201cMisleading users by licensing your name to companies for money has a downside. Welcome to that downside,\u201d <a href=\"https:\/\/x.com\/NastyMining\/status\/2103962592331080161?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">one person wrote<\/a>.<\/p>\n<p>Another individual added:<\/p>\n<blockquote>\n<p>\u201cTwo years later, you felt was the right time to let everyone know?\u201d<\/p>\n<\/blockquote>\n<h2>Same Name, Different Company<\/h2>\n<p>Blockstream did not explain why the bitcoin mining firm retained its licensed name and only clarified the arrangement after online reports claimed Blockstream itself had been sued. If the separation occurred when the parent says it did, questions remain about how many counterparties continued writing checks under the Blockstream name after the two businesses had parted ways. On the other hand, some observers thanked Blockstream for publicly clarifying the situation.<\/p>\n<p>\u201cGood to have this on the record, a lot of people were still assuming the mining entities were tied directly to Corp,\u201d <a href=\"https:\/\/x.com\/xiaobaicai03\/status\/2103947402902393053?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">one person wrote on X<\/a>.<\/p>\n<p>The discussion comes four days after the company published a \u201ctechnical security assessment of the September 6 Liquid incident.\u201d The Liquid Network report examines the underlying technical failure, <a href=\"https:\/\/blog.blockstream.com\/liquid-network-security-incident-assessment\/\" target=\"_blank\" rel=\"noopener noreferrer\">chronicles the response timeline<\/a>, and outlines a series of corrective measures, including stricter remediation standards, regular code reviews, adversarial testing, and an expanded bug bounty program, designed to prevent similar incidents in the future.<\/p>\n<p>Still, it offers no timetable for <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/liquid-hack-bull-bitcoin-users-facing-30-day-wait-reclaim-btc\/\">restoring the L-BTC to BTC peg-outs<\/a>.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/blockstream-addresses-6-7m-river-lawsuit\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways River Financial sued Blockstream Services Canada ULC on Sept. 11, 2026, seeking about $6.7 million. Blockstream Corp said Sept. 26 the U.S. and Canada services firms left its control in mid-2024. Blockstream Mining kept the licensed name after the April 2025 public spin-out announcement. River\u2019s $6.7 [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":78746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78745"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78745"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78745\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78746"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}