River Financial’s Blockstream lawsuit demands $6.7 million in unpaid fees

A payment dispute over bitcoin mining hosting fees has escalated into a full courtroom fight, with the River Financial Blockstream lawsuit now sitting before a US judge after months of missed installments. River Financial, the bitcoin-focused financial services firm led by CEO Alex Leishman and backed by investor Peter Thiel, has accused Blockstream Services Canada of defaulting on a multi-million dollar settlement tied to a canceled hosting agreement. The Canadian company was once part of Blockstream Corporation, the firm founded by Adam Back, before it was spun off in mid-2024.

Key takeaways

• River Financial sued Blockstream Services Canada for defaulting on a multi-million dollar settlement stemming from a canceled bitcoin mining hosting deal.
• River is owed a total of roughly $6.7 million by Blockstream Services Canada, an amount made up of a $3.5 million reimbursement for prepaid hosting fees plus a $3.1 million charge for early termination.
• Monthly payments of $239,389.40 began August 1, 2025, but stopped on March 31, 2026, and remained unpaid through September 11, 2026.
• Christopher Cook, president of Blockstream Services Canada, signed the December 13, 2024 termination agreement and reportedly has a prior fraud conviction.
• A US magistrate judge recused himself from the case, which was reassigned to a new judge on September 15, 2026.

River Financial Sues Blockstream Services Canada Over Unpaid Settlement

The complaint filed by River Financial lays out a straightforward allegation: Blockstream Services Canada agreed to repay millions of dollars under a settlement, started making payments, then simply stopped. According to the filing, the company defaulted on March 31, 2026, and the balance remained unpaid through September 11, 2026, the date River took the dispute to court.

Details of the lawsuit and default timeline

River’s case centers on a breakdown that unfolded gradually rather than all at once. Payments were flowing normally for months before they abruptly stopped. Once the March 31 deadline passed without a transfer, River began sending demand letters, starting April 10, warning that any overdue amounts would accrue interest at a rate of 9.75%. Despite those warnings, the money never arrived, and the gap between the missed payment and the lawsuit stretched over five months.

Claims of breach of contract and unjust enrichment

River’s legal theory rests on two pillars: breach of contract and unjust enrichment. The company argues that Blockstream Services Canada not only failed to honor the payment schedule it agreed to, but also kept funds it was contractually obligated to return. Notably, River claims the Canadian firm acknowledged the outstanding balance in writing on May 27, which could become a key piece of evidence if the case moves toward a ruling on the merits.

Why this matters: the case is a reminder that even settled disputes in the bitcoin mining hosting business can unravel if a counterparty’s cash flow tightens, leaving the paying side exposed long after a deal is supposedly closed.

Background on Blockstream Services Canada and Contract Terms

To understand why River is owed money at all, the story has to go back to a 2021 hosting arrangement that predates the settlement by years. That original deal, and how it unwound, explains the size of the figures now in dispute.

Spin-off from Blockstream Corporation in mid-2024

Blockstream Services Canada was formerly part of Blockstream Corporation, the company founded by Adam Back, but it separated in mid-2024. That structural change matters because it draws a line between the entity River originally contracted with and the one it is now suing, even though both trace back to the same corporate lineage.

Key contract details, early termination, and payment schedule

The roots of the dispute go back to December 2021, when River signed a managed hosting agreement with Blockstream Services Canada as part of an effort to roll out River Mining, a product selling hosted BTC miners to customers. Under that agreement, River prepaid almost $7.8 million across 2021 and 2022 for three separate Hosting Services Orders.

When December 13, 2024 arrived, Blockstream was still sitting on $4.3 million of those prepaid funds, prompting both parties to decide the moment had come to dissolve their agreement. That same day, they signed an early termination agreement under which Blockstream owed River a $3.5 million refund of prepaid fees plus a $3.1 million early termination fee — $6.7 million combined. The repayment plan called for monthly installments of $239,389.40, starting August 1, 2025.

Legal and Procedural Developments in the Case

Court procedure has already shaped part of this story before any substantive ruling has been made. A US magistrate judge recused himself from the case, and it was reassigned to a new judge on September 15, 2026, adding a procedural wrinkle to litigation River has described as complex.

Judge reassignment and court proceedings

The recusal and reassignment don’t change the underlying facts River is alleging, but they do reset part of the clock on how quickly the case moves forward. A newly assigned judge typically needs time to get up to speed on filings, which can push substantive hearings further out.

Significance of leadership background

One detail that stands out in River’s filing is the identity of the person who signed the termination agreement on Blockstream Services Canada’s behalf. Christopher Cook, described as president of the company, signed the December 13, 2024 agreement. According to two researchers cited in reporting on the case, Cook is a convicted felon who spent more than a year in prison over an unrelated fraud conviction. That background doesn’t establish anything about the current dispute’s outcome, but it adds a layer of scrutiny to a company already facing allegations of failing to honor a signed repayment plan.

Separately, other outlets covering the dispute have put the amount in question in the same range, describing a US-based bitcoin financial services firm pursuing a Canadian mining company for unpaid refunds tied to a canceled contract, figures that align with the $6.7 million River says it is owed.

For companies operating in the hosted bitcoin mining space, the case underscores a practical risk: prepaid hosting arrangements can leave one party holding funds for years, and unwinding those deals through a termination agreement doesn’t guarantee the money actually gets paid back on schedule. Whether River recovers the full $6.7 million will now depend on how the newly assigned judge handles a case that combines a straightforward payment default with questions about the leadership of the company on the other side of the ledger.

FAQ

What is the reason for the lawsuit filed by River Financial against Blockstream Services Canada?

River Financial sued Blockstream Services Canada for defaulting on a multi-million dollar settlement related to prepaid bitcoin mining hosting services.

How much money does Blockstream Services Canada owe River Financial?

Blockstream Services Canada owes River approximately $6.7 million from prepaid hosting fees and early termination fees.

When did the payment default by Blockstream Services Canada begin?

Payments stopped on March 31, 2026, and remained unpaid through September 11, 2026.

What is the background of the Blockstream Services Canada president involved in the contract?

Christopher Cook, president of Blockstream Services Canada who signed the termination agreement, has a prior fraud conviction.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.