Blink Wallet Shuts Down After Custodial Account Breach
Blink Wallet, a Bitcoin Lightning Network payments app, shut down its services on September 19 after an attacker accessed and drained funds from some of its custodial accounts. The company has deployed a patch to address the vulnerability but is still investigating the full scope of the damage.
The breach affected only custodial accounts where Blink holds the keys on behalf of users, leaving non-custodial wallets unaffected. Blink's multisig cold storage system paired with smaller hot wallet components was designed to limit exposure in such scenarios.
The company has not disclosed how much money was taken or how many accounts were compromised but assured users that most funds remain secure. An investigation is underway to determine the precise breach vector, and Blink stated it has already deployed a patch, suggesting the team identified at least the surface-level exploit.