Blink Suspends Services After Attacker Drains Custodial Accounts on Bitcoin Lightning Network

Blink, a Bitcoin Lightning Network payments app, suspended services on September 19 after discovering an attacker had drained funds from a limited number of its custodial accounts.

The company's official status page marked the event as a critical 'custodial accounts' incident and resolved it the following morning.

A few dozen custodial accounts were compromised, with a large majority of funds remaining secure. Blink credited its multisig cold-storage system paired with smaller hot-wallet components for limiting damage.

The company paused services, deployed an emergency patch, and restored them by Saturday evening, promising to reimburse affected users.