Bitcoin pioneer Adam Back's cryptocurrency empire is facing severe operational and legal strain. Blockstream's Liquid Network protocol suffered a devastating $320 million hack on September 6, 2026, with attackers still holding nearly 600 BTC. Meanwhile, River Financial has sued spun-out licensee Blockstream Services Canada ULC for $6.7 million over a defaulted termination agreement, prompting Blockstream Corp to issue a public disclaimer clarifying that it has not owned or managed the mining unit since mid-2024.
River Financial lawsuit
- ▪River Financial filed a lawsuit against Blockstream Services Canada ULC on September 11, 2026, in the U.S. District Court for the Northern District of California, seeking approximately $6.7 million.
- ▪Christopher Cook, who signed the December 13, 2024 termination agreement as president of Blockstream Services Canada ULC, is a convicted felon who served over a year in prison for an unrelated fraud conviction.
- ▪The $6.7 million sought by River Financial consists of a $3.55 million prepaid hosting fee refund and a $3.15 million early-termination payment stemming from a December 2021 managed hosting agreement.
- ▪River Financial alleges that Blockstream Services Canada ULC breached a December 13, 2024 termination agreement by defaulting on monthly settlement installments of $239,389.40 starting March 31, 2026.
Blockstream corporate restructuring
- ▪The public spin-out of Blockstream Mining as an independent company led by CEO Chris Cook was officially announced in April 2025.
- ▪Blockstream Corp stated that the spun-out mining businesses retained the Blockstream name for a limited period under a brand licensing agreement following their separation from the parent company.
- ▪Blockstream Corp issued a statement on September 26, 2026, clarifying that Blockstream Services USA and Blockstream Services Canada ULC have not been under its ownership, control, or management since mid-2024.
Liquid Network hack
- ▪Attackers siphoned nearly 4,000 BTC, worth approximately $320 million, from Blockstream's Liquid Network protocol during a security breach on September 6, 2026.
- ▪Blockstream Corp published a technical security assessment of the Liquid Network incident outlining corrective measures but offered no timetable for restoring L-BTC to BTC peg-outs.
- ▪The Liquid Network attackers returned 3,400 BTC but have retained nearly 600 BTC despite demands from Blockstream Corp.
Failed business deals
- ▪A public-market deal for a Bitcoin Treasury firm promoted by Adam Back collapsed as the cryptocurrency industry underwent a major shakeout.
- ▪Adam Back invested €7.6 million in September 2026 into Capital B, a Paris-listed company that stockpiles Bitcoin as a treasury asset.
Adam Back business challenges
- ▪Cryptographer Adam Back, whose Hashcash system was cited in the Bitcoin white paper, faces mounting strain across multiple Bitcoin-related business ventures linked to him.
- ▪Adam Back publicly asserted on September 27, 2026, that Justin Bieber's Bored Ape Yacht Club NFT, purchased for $1.3 million in January 2022, has zero or negative value.
Debatable claims
- ▪Stockpiling Bitcoin as a corporate treasury asset is a viable strategy for public companies
- ▪Blockstream Corp bears responsibility for the actions of its spun-out mining unit
- ▪Blockstream's refusal to set a timetable for restoring Liquid Network peg-outs is justified
- ▪Bitcoin sidechains are secure enough for high-value transactions
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