Question if someone can help. I’m very new at this, but have managed to set up and fund my lightning wallet and fund channels. I set up the BlueWallet integration today, linked Blue Wallet HUB, and added funds to my personal BlueWallet Lightning Wallet via sending BTC from Cash App.
I do now see the funds in my BlueWallet app, but have noticed that the funds were also added to my Bitcoin wallet on the node itself. How does this work? doesnt that mean I can now spend those funds from my node’s bitcoin wallet, and if so, what happens to the duplicate lightning funds in blue wallet?
the transfer did show up in the transaction list, but it also increased my Bitcoin balance on Umbrel. Is this a bug?
Note the image here. Before this addition from CashApp to Blue Wallet, I had 35k sats or so in my Umbrel Bitcoin Core Wallet. After the transfer of 61k sats, it shows as a deposit in the Bitcoin core Wallet and balance is increased by that amount.
Just so you can see, my blue Wallet lightning balance also increased. At first I thought I had accidentally transferred to my on chain Wallet, but no because it shows here too.
Note that I found someone with I think the same issue, but not sure if that was resolved. Blue Wallet Lightning Node
To add additional context, I used the “Refill with External Wallet” button under “Manage Funds” in the Blue Wallet app and sent from an on-chain custodial wallet (cash app) to produce this issue. Can someone else try this on their instance to verify what is occurring here?
I think this is a bug / issue with Bluewallet LNDHUB and not of Umbrel.
What you did is the following (as far I understand from your explanation):
you linked a LNDHUB from your Umbrel node (empty LN wallet) - OK done
you clicked in BW to refill from external source / wallet - OK done, but this feature I think works ONLY with BW custodial wallets (connected to BW servers) not ones that are hosted on your Umbrel LNDHUB.
funds were sent to your node onchain, to be used as opening a LN channel for that LNDHUB wallet. This part I think is missing from LNDHUB or wasn’t deployed yet by BW team.
In order to fund a self hosted LNDHUB wallet, you should use another LN wallet and NOT onchain.
As I explained exactly step by step in the guide about Umbrel + BW LNDHUB
Thanks @DarthCoin. I think you accurately summarized. I will do what you said if I need to add funds in the future.
Question now is how do I get rid of the extra funds in my on-chain BTC wallet on Umbrel? Are they really even there? I have tested spending from the lightning wallet in BlueWallet, and that does work, which means they really did transfer to the lightning wallet, but they are also still showing in the on-chain BTC wallet on Umbrel. I guess I should try to spend them from Umbrel on-chain wallet and see what happens. My guess is it will error out in some way, but not sure. I will update once I try it.
Update: This does indeed throw an error when trying to spend the on-chain coins (reserved Wallet balance invalidated):
Further update. Closed all lightning channels and was then able to transfer all BTC out to an external on-chain Wallet. Going to scrap the BW lightning Wallet and start over and transfer in from another lightning Wallet to avoid this issue in the future.
So how were you able to close out the channel on blue wallet? I don’t see the option in the app. Did you have to transfer your funds to another lighting wallet?
