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Crypto

Zeus Wallet taken offline after cyberattack, says no customer funds at risk

· Cointelegraph

The self-custodial Bitcoin Lightning Network wallet disabled infrastructure after an incident and founder Evan Kaloudis said no customer funds were lost and no Lightning vulnerability was found.

Zeus Wallet, a self-custodial Bitcoin Lightning Network wallet, took its infrastructure offline after a cybersecurity incident on Wednesday, and is auditing its systems before restoring services.

In an X post announcing the incident, Zeus said the attack did not put customer funds at risk and that it had no evidence the incident affected Lightning node software. “Based on our investigation so far, we believe this incident was limited to Zeus infrastructure,” Zeus founder Evan Kaloudis said in a company blog post.

According to Kaloudis, Zeus mitigated the attack within hours. He said that customers whose Lightning Service Provider (LSP) channels closed during the incident will receive replacement channels once services resume.

The company did not disclose the nature of the attack or provide a timeline for restoring operations. Zeus said the incident reinforces its work on trusted execution environments, also known as enclaves, and the Validating Lightning Signer (VLS) project to strengthen its infrastructure.

Zeus’ move follows its Monday announcement that it would disable swaps following Boltz’s decision to halt operations. Boltz, a non-custodial Bitcoin swap service, said that its platform would remain disabled until further notice.

Cointelegraph requested Zeus provide additional details about the incident but had not received a response by publication.

Related: Coldcard hackers transfer 64 BTC and 200 ETH to cryptocurrency mixers