Liquid peg-out via Green wallet: LBTC sent to internal GDK address but BTC never released to mainchain
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Description
## URGENT: Funds stuck in Blockstream custody —
Liquid peg-out never completed, BTC never released
### ⚠️ This is not just a bug report — I need my funds back
I am a Blockstream Green user with **0.00790000 LBTC (~$557 USD)
currently held in a Blockstream/GDK-controlled Liquid address**,
as a direct result of a failed peg-out initiated through your wallet.
The funds have been in your custody for **7+ hours** with no resolution
from support.
**I am requesting that a Blockstream engineer:**
1. Locate the LBTC at the internal address shown below
2. Complete the peg-out manually to my Bitcoin address, OR
3. Return the LBTC to my originating wallet
---
### Where my funds are right now
The LBTC is confirmed on-chain at this Blockstream-controlled
Liquid address:
`ex1p8py8chhzfsdkdzjcznzm2e24rv5kv8spznzyrw97quqmuy53xsksruuj4e`
**Amount:** 0.00790000 LBTC
**Liquid TXID that sent funds there:**
`10444ac79f01caf83891521c37bf9e816c46c7f1ee03900ec4943289d7cd47d4`
---
### My Bitcoin destination address (never received funds)
`bc1q3jp4gvcvvvv5hvcza80wnh2dr7c65z07gktm0tm`
Verified zero activity on Bitcoin mainchain as of 19:00 UTC-3,
March 11 2026.
---
### Timeline
| Time (UTC-3) | Event |
|---|---|
| 12:26 | Peg-out initiated via Blockstream Green (iOS) |
| 12:26 | Liquid tx confirmed, LBTC sent to GDK internal address |
| 12:26–19:00 | Multiple federation batches occurred — my output not included |
| 19:00+ | BTC still not received. Support ticket open, no resolution. |
---
### Transaction detail
| Field | Value |
|---|---|
| Liquid TXID | `10444ac79f01caf83891521c37bf9e816c46c7f1ee03900ec4943289d7cd47d4` |
| Block height | 3792999 |
| Confirmations | 385+ |
| Output #0 | `ex1p8py8...ruuj4e` → **0.00790000 LBTC** (Blockstream custody) |
| Output #1 | `ex1qc3at8...pmdu` → 0.00009966 LBTC (change) |
> ⚠️ Both outputs are Liquid `ex1` addresses. No burn output
> to Bitcoin mainchain was ever created by the GDK pipeline.
---
### What went wrong (bug)
The Green wallet UI showed "Transaction Completed" and
"Recipient Receives: 0.00790000 **LBTC**" — not BTC.
This indicates the GDK routed the funds to an internal
service address expecting the peg-out backend to complete
the Bitcoin-side release, which never happened.
The user had no visibility into this failure state.
---
### Current status
- Blockstream support ticket: **submitted, no useful response**
- Blockstream AI chatbot: **unable to help**
- Telegram community: **only scammers responded**
- Funds: **confirmed in Blockstream custody on Liquid**
**Please escalate this to an engineer who can access
the peg-out pipeline and release my funds.**
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