BTCPay backers offer up to 3 BTC bounty after wallet exploit

BTCPay backers offer up to 3 BTC bounty after wallet exploit

N
News Editor
2026-08-11 21:16:03
BTCPay Server supporters are offering a recovery bounty after a recent exploit exposed connected wallets to theft. In a post on X on Monday, the project said it would pay 10% of any recovered funds, capped at 3 BTC, if all stolen Bitcoin is returned. The offer applies to anyone who provides useful information, including the attacker. The project had first warned users on Friday to upgrade to version 2.4.2 or take servers offline. BTCPay later said the flaw allowed attackers to obtain LND admin macaroons, credentials that grant broad control over a Lightning Network node, and then use them to access linked wallets. It has not disclosed the amount of Bitcoin stolen, the number of affected users, or whether any funds have already been recovered. BTCPay also said the BTCPay Server Foundation will donate 0.21 BTC each to security researcher Craig Raw and the Bitcoin Red Team fund for responsibly disclosing the bug. The company added that it is tightening code review and putting security patches ahead of new features as AI makes vulnerability discovery easier for attackers.

BTCPay Server supporters are offering a bounty tied to the recovery of Bitcoin stolen in a recent exploit. In a post on X on Monday, BTCPay said it would pay 10% of any recovered funds, capped at 3 BTC, if all of the stolen Bitcoin is returned. Based on current prices cited by the project, that cap is worth about $190,000.

BTCPay backers offer up to 3 BTC bounty after wallet exploit 2

The offer extends to anyone with information that could help recover the funds, including the attacker.

“We will examine our mistakes, but regret alone will not help affected users or secure the project,” BTCPay wrote. “There is no time to waste. We have to learn, improve, and act quickly.”

Users were told to upgrade or take servers offline

BTCPay first warned users about the attacks on Friday, telling them to install version 2.4.2 or take their servers offline. At that stage, the project had not confirmed any thefts or explained how the exploit worked.

According to BTCPay, the flaw allowed attackers to obtain LND admin macaroons, credentials that give broad control over a Lightning Network node. Those credentials could then be used to access connected wallets.

The Lightning Network is a layer-2 payment network built on top of Bitcoin and is designed to support faster and cheaper transactions. Its nodes route payments through channels between users.

BTCPay has not disclosed the scale of losses

BTCPay has not said how much Bitcoin was stolen, how many users were affected, or whether any funds have been recovered so far.

If more than one tip contributes to the recovery, the bounty will be split in coordination with victims. The project said it would weigh each victim’s losses, the amount recovered, and the usefulness of each tip when deciding how to divide the reward.

Foundation to make two 0.21 BTC donations

The BTCPay Server Foundation said it will donate 0.21 BTC each to security researcher Craig Raw and the Bitcoin Red Team fund for responsibly disclosing the vulnerability.

“These are modest contributions, but they are what we can offer as a FOSS project and a way to appreciate people doing critical security work, which helps the entire ecosystem,” BTCPay wrote.

Security patches will take priority over new features

The company said it is strengthening code reviews and prioritizing security patches over new features as AI makes it easier for attackers to find vulnerabilities in Bitcoin software.

“Defending software in this environment requires better tools, more thorough reviews, faster security responses, and support for researchers who find and responsibly report vulnerabilities,” BTCPay wrote.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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