River Financial Sues Blockstream Services Canada Over $6.7 Million Mining Dispute
River files lawsuit over unpaid mining refunds
River Financial, a Bitcoin brokerage backed by Peter Thiel, has sued Blockstream Services Canada over a failed settlement regarding Bitcoin mining services. The legal action was filed on September 11, 2026, after the Canadian company allegedly stopped making payments on a multi-million dollar agreement.
The dispute centers on a termination deal signed in late 2024. River claims Blockstream Services Canada defaulted on the settlement on March 31, 2026, and remained in default until the lawsuit was initiated.
Key figures in the legal battle
- River prepaid nearly $7.8 million for hosting services in 2021 and 2022.
- A December 2024 agreement required Blockstream to refund $6.7 million total.
- The payment plan included monthly installments of $239,389.40 starting August 1, 2025.
- River alleges the first missed payment occurred about six months before a recent hack on the Liquid network.
Background of the contract
The conflict began in December 2021 when River signed a managed hosting agreement with Blockstream Services Canada. At that time, River was launching its own mining service, selling hosted Bitcoin miners. By December 13, 2024, Blockstream still held $4.3 million of River's prepayments. Both parties agreed to end the partnership, with Blockstream owing a $3.5 million refund of fees plus a $3.1 million early termination fee.
Christopher Cook, the president of Blockstream Services Canada, signed the termination agreement. According to two researchers cited in the report, Cook is a convicted felon who served over a year in prison for an unrelated fraud conviction.
Court proceedings and allegations
A US magistrate judge recused himself from the case, and a new judge was assigned on September 15. River's complaint cites breach of contract and unjust enrichment. The company sent demand letters starting April 10, warning that overdue amounts would accumulate interest at a rate of 9.75%.
River states that Blockstream Services Canada acknowledged the outstanding balance in writing on May 27.
Clarification on recent security events
Some observers worried the lawsuit might be connected to a recent hack of the Liquid network, which is supported by Blockstream. However, reports confirm the two events are unrelated. The first missed payment in this dispute happened before the Liquid network hack occurred.
Source
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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