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BTCPay Exploit Drains Lightning Nodes, Fork Risk and $1B ETF Flows Pressure Bitcoin

Macaroon credential thefts forced urgent upgrades or server shutdowns.

Overview

  • Developers confirmed on Friday that a BTCPay Server vulnerability was actively exploited and that attackers stole Lightning macaroon files, which grant control of LND nodes and can be used to close channels and move funds.
  • The BTCPay project urged operators to upgrade immediately to version 2.4.2 or take servers offline after several Lightning nodes were drained and hardware wallet maker Foundation reported its BTCPay‑connected node was emptied while its main on‑chain hot wallet remained secure.
  • A contested BIP‑110 proposal is set to hit its activation height with miner signalling near 2.6 percent, a level far below the 55 percent threshold yet able to produce a minority chain because nodes running BIP‑110 software will reject non‑signalling blocks at activation.
  • US spot Bitcoin ETFs attracted roughly $1 billion in net inflows this week, their strongest weekly intake since April, a flow Bloomberg analysts say may partly reflect custody concerns after recent wallet security incidents.
  • Bitcoin traded near $65,000 as on‑chain activity surged with 2.27 million new wallets created last week, and market watchers say the next material outcomes to watch are widespread BTCPay upgrades, confirmation of any fork split, and whether ETF flows remain steady.