Threshold halts tBTC minting and redemptions after critical Linux kernel flaw disclosure
Threshold Network suspended tBTC minting and redemptions on Oct. 31 in response to CVE-2026-98432, a critical Linux kernel vulnerability recently disclosed by Red Hat. The move temporarily blocks the normal two-way conversion process between BTC and tBTC, a 1:1 Bitcoin-backed cross-chain asset used across Ethereum-based DeFi applications such as lending and liquidity mining. In a follow-up statement on Nov. 2, Threshold said tBTC remains fully backed and that no loss of funds has been detected. The team reported that wallets tied to the bridge hold about 4,320 BTC, worth more than $330 million, against roughly 4,185 tBTC in circulation, leaving an excess reserve of about 135 BTC. Threshold also said it has found no unauthorized minting or transfer activity. The incident has already affected DeFi integrations. Aave paused new tBTC deposits and borrowing, and its interface showed about $137 million in total tBTC reserves frozen. Threshold described its action as precautionary rather than a response to a confirmed compromise, adding that node operators have either patched their servers or taken nodes offline while waiting for fixed kernel versions. As of publication, Threshold had not provided a timeline for restoring minting and redemption.
