Hack Targeting Bitcoin Strikes Again, This Time Through BTCPay Server

Attacks on Bitcoin-related infrastructure have been surging, and the latest breach targeted a vulnerability in BTCPay Server, a Bitcoin payment service.

CoinDesk reported on August 8 that unidentified hackers exploited a security flaw in BTCPay Server to access Lightning Network payment servers and steal Bitcoin. The scale of the losses has not yet been determined.

The attack targeted servers running LND, software widely used to operate Lightning Network nodes. The Lightning Network is infrastructure that allows faster, cheaper Bitcoin transfers.

Hackers obtained access to Lightning Network servers through the BTCPay vulnerability. That access allowed them to take control of the servers and steal funds.

BTCPay urged Lightning Network users to update their servers to the latest version immediately.

Cold-wallet company Foundation was also affected. Foundation Chief Executive Officer Zach Herbert wrote that a hacker stole funds from the company’s Lightning payment server and even closed its payment channels.