Critical BTCPay Server Flaw Exploited to Drain Merchant Lightning Nodes

Critical BTCPay Server Flaw Exploited to Drain Merchant Lightning Nodes

N
News Editor
2026-08-08 07:48:51
Late on Friday evening, an attacker exploited a critical vulnerability in BTCPay Server to steal Lightning node credentials from merchants who run LND software, and then transferred the funds. Both Foundation, a hardware wallet manufacturer, and Citadel21, a bitcoin publication, have all confirmed that their nodes were drained in the attack. BTCPay, for its part, has not yet disclosed the exact amount of money lost in this incident. The vulnerability, according to reports, allowed unauthenticated remote access to LND's .macaroon credential files, which in turn gave attackers the ability to control the affected nodes. On-chain wallets, however, were not affected by the attack. Members of the Bitcoin Red Team had previously reported the problem to BTCPay. The official recommendation is for users to upgrade immediately to version 2.4.2 or to take their servers offline. An investigation is currently still underway. The security incident was reported by Techub News, citing CoinDesk.

An attacker exploited a critical vulnerability in BTCPay Server late Friday to steal Lightning node credentials from merchants running LND software and transfer funds from their nodes. Hardware wallet maker Foundation and bitcoin publication Citadel21 both confirmed that their nodes had been drained. BTCPay has not disclosed the exact amount of losses.

According to reports, the flaw allowed unauthenticated remote access to LND's .macaroon credential files, which are used to control a Lightning node. On-chain wallets were not affected. Members of the Bitcoin Red Team had previously flagged the problem to BTCPay. Officials advised users to upgrade to version 2.4.2 immediately or to take their servers offline.

An investigation is ongoing. Techub News reported the development, citing CoinDesk.

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