Several Bitcoin businesses tied to Adam Back, the Bitcoin pioneer and Blockstream co-founder, have run into trouble in quick succession, according to Bloomberg. BSTR Holdings, a Bitcoin treasury venture that Back had helped promote, has terminated its merger with a special purpose acquisition company backed by Cantor Fitzgerald. Under the terms cited in the report, BSTR is required to pay a $15 million breakup fee.
A separate business, Blockstream Mining, which Back helped found and in which he holds a minority stake, has also come under pressure after being spun out from Blockstream. The company and its partner Exacore are facing multiple lawsuits alleging unpaid equipment bills, electricity costs, and customer security deposits. The financing tied to those operations totaled about $2 billion.
Bloomberg also said Liquid Network, the Bitcoin sidechain launched by Blockstream, was hit by a hack. Roughly 4,000 BTC was stolen. Of that amount, 3,400 BTC has been returned, while the attacker still holds Bitcoin worth about $47 million.
Several Bitcoin businesses linked to Adam Back have recently run into setbacks, according to Bloomberg. Back is known as a Bitcoin pioneer and is a co-founder of Blockstream.
BSTR Holdings, a Bitcoin treasury project that Back had taken a leading role in promoting, has terminated its merger with a special purpose acquisition company under Cantor Fitzgerald. BSTR has been required to pay a $15 million breakup fee.
Blockstream Mining, a Bitcoin mining business that Back helped create and in which he holds a minority stake, has also come under pressure. After being separated from Blockstream, the company and its partner Exacore were hit with multiple lawsuits alleging unpaid equipment bills, electricity charges, and customer security deposits. The financing involved was reported at about $2 billion in total.
Liquid Network, the Bitcoin sidechain launched by Blockstream, was also affected by a hack. About 4,000 BTC was stolen, with 3,400 BTC later returned. The attacker still holds Bitcoin worth about $47 million.
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