River Financial has filed a lawsuit against Blockstream Services Canada over an unpaid settlement valued at $6.7 million. According to the complaint, Blockstream Services Canada stopped making payments on a contractual obligation beginning March 31, 2026, and remained in default when River filed suit on September 11.
The dispute traces back to December 2021, when River signed a managed hosting agreement with Blockstream Services Canada as part of River's bitcoin mining service launch. River pre-paid approximately $7.8 million between 2021 and 2022 for three hosting service orders.
By December 13, 2024, the two companies agreed to terminate the arrangement. Under the exit agreement, Blockstream owed River a refund of roughly $3.5 million in prepaid hosting fees plus a $3.1 million early termination fee, totaling $6.7 million. The companies structured repayment in monthly installments of $239,389.40, with payments scheduled to begin August 1, 2025.
River alleges the first missed installment occurred around March 31, 2026. The company sent demand letters starting April 10, warning that overdue amounts would accrue interest at 9.75 percent. River claims Blockstream Services Canada acknowledged the outstanding balance in writing on May 27.
The lawsuit alleges breach of contract and unjust enrichment. A US magistrate judge recused himself from the case, and a new judge was assigned on September 15.
Blockstream Services Canada was spun out of Blockstream Corporation in mid-2024 and now operates as a separate entity licensing the Blockstream name.
