Bloomberg investigation confirms Blockstream's frozen funds and previously undisclosed fraud conviction.
Regulation & Gov ·
A Bloomberg investigation has corroborated reports that Blockstream's Liquid Network experienced a hack on September 6 resulting in $320 million in frozen user funds, and that Christopher Cook, who operates Blockstream's Bitcoin mining division, completed a three-year prison sentence for fraud without investors being informed of his conviction. According to reporting, Blockstream has been offering Bitcoin cloud mining investments since 2021 with promised annual returns of 20 percent, while the Luxembourg platform used to raise capital for these offerings was partly owned by Adam Back, Blockstream's CEO, who also took Bitcoin loans from the same platform without investor disclosure.