Bitcoin’s exploit week worsens as BTCPay flaw drains Lightning nodes

Share This Post

Citadel21, the bitcoin publication run by pseudonymous commentator hodlonaut, also reported that its Lightning node had been swept, though it said little money was held there.

The vulnerability had already been reported to BTCPay by members of the Bitcoin Red Team — a group of developers that began pointing AI models at bitcoin codebases this week and has filed thousands of findings across hundreds of projects since.

Read More: Bitcoin developers flag 85 critical bugs in an “extremely bad” situation.

BTCPay credited Red Team members Craig Raw, Rob Hamilton, Calle and Evan Kaloudis with responsibly disclosing the issue and helping analyze it.

The group’s stated reason for publishing findings quickly was that people outside it would arrive at the same bugs, and by the time BTCPay’s public warning went out, attackers were already exploiting this one against live servers.

Meanwhile, BTCPay narrowed the scope after its initial alert, saying its standard on-chain wallets, including hot wallets generated inside BTCPay, are not affected by the credential flaw.

The exposure applies specifically to deployments using LND, and funds held inside LND’s own on-chain wallet can still be at risk because they sit under the compromised Lightning node.

BTCPay has not yet published technical details of the vulnerability, saying operators need time to patch. A full postmortem is due in the coming days.

Related Posts

Coinbase, Kalshi Support CFTC in US Stock Perps Legal Fight

Coinbase, Kalshi and four other companies asked a federal...

Kalshi reportedly faces potential CFTC charges: Politico

Prediction markets operator Kalshi is being warned of imminent...

Crypto Trust Firms Challenge Banks in US Derivatives Settlement

Crypto companies are moving deeper into financial services traditionally...

Poland Passes Crypto Sanctions Bill in Lower House

Poland’s lower house passed a bill that would broaden...

Why the UK Needs Stablecoin Freeze Rules

Opinion by Lissele Pratt, co-founder, CapitalixeLast weekend, the Federal...