Solv Protocol Says Bitcoin (BTC) Assets Untouched in 50-BTC BTC+ Redemption Dispute

A Single-Transaction Risk Review

Solv Protocol published a formal response on September 30 to the dispute surrounding its BTC+ product, saying the contested redemption stems from a single transaction that triggered a risk review and that the Bitcoin (BTC) tied to the case remains fully held within the protocol. The statement on the protocol's official X account lists three points. First, BTC+ subscriptions and redemptions otherwise operate as normal, and the case concerns one specific transaction that set off the review. Second, the assets connected to it have not been transferred, destroyed or otherwise disposed of, and are being examined under Solv's existing risk management process. Third, Solv says it will judge the matter on verifiable information and evidence, not on social media identity or one-sided public statements, and will work with legal counsel or judicial procedures where necessary. The statement closes by ruling out further public comment on discussions rooted in online identity. It names neither the user nor the address at the center of the case, and it sets no date for concluding the review or restoring the address. The response arrived a day after X user neil lee (@neillee99) laid out his own case in a detailed public post. He states that BTC+ redemptions resumed on July 31 yet his address stayed restricted, leaving assets corresponding to roughly 50 BTC, exposure whose marked value moves with the Bitcoin price, unredeemable. His thread had drawn about 520,000 views and 650 replies by the time Solv spoke. BTC+ is a yield-bearing Bitcoin DeFi vault, and the exchange between the two posts is now the full public record of the case.

@SolvProtocol · X post

Statement on the protocol's official X account.

View on X

July Exploit, an 18-Day Freeze

The suspension the user ran into traces to a July 13 security incident. Solv explained the mechanics in its July 20 disclosure: an attacker obtained the deployer private key, the key held by the account that originally deployed the contract, and used it to upgrade the BTC+ mint proxy contract on BNB Smart Chain, the upgradeable layer that decides what the contract executes, minting unauthorized BTC+ in the process. Solv says the team isolated the malicious contract within 3 hours and froze, burned or quarantined every unauthorized token, and that the underlying BTC was fully safe. Subscriptions and redemptions had been paused as a precaution, and on July 31 the protocol declared its internal security review complete and switched both back on, 18 days after the incident. The user's account fills in what followed. He says he withdrew about 50 BTC from Binance on July 8 and converted it, through ordinary channels, from SolvBTC into BTC+ to earn an annualized yield near 3%, a plain yield farming position rather than any speculative trade. He reports discovering only after the deposit that minting and redemption had been suspended, and says requests in official community channels on July 18 and July 20 brought no effective reply. After the July 31 resumption, he says staff told him he could now initiate redemption, but his address stayed locked. He states he has since submitted the requested source-of-funds records, transaction history, wallet control proof and account information across roughly 60 emails, about 50 of which he sent, and that he first encountered the product on the BTC earn page of the Binance Web3 Wallet. His demands are narrow: lift the restriction, restore redemption, return the assets, and answer how much longer the review takes, why the address is still restricted, and when redemption resumes normally. He also tagged Binance executives He Yi and Richard Teng, the DeFi lending market Venus Protocol and several Solv investors, while stating he does not ask them to shoulder Solv's liability. These timelines and correspondence come from his post alone and have not been independently verified; Solv's statement does not address them.

No Timeline on the Table

The load-bearing record here is Solv's own statement, and it confirms less than either side wants: assets sit in the protocol, a review is running, and nothing else is fixed. For wrapped BTC positions, custody depends on the operator's risk process rather than on-chain self-custody, so the review's conclusion is the only event that changes the user's position. Before the dispute closes, Solv must complete the evidence-based review it describes and state when the restricted address can redeem; until then, the 50 BTC figure stands only as the user's own account. Our Bitcoin coverage tracks the case as it develops, and readers weighing venue and custody risk for similar products can consult our guide to the Best Crypto Exchanges.