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BTCPay Exploit Exposes Merchant Lightning Nodes to Security Risks

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A vulnerability in BTCPay Server, an open-source Bitcoin payment processor, has been exploited to drain funds from merchant Lightning Network nodes. This prompted an urgent security warning from developers.

BTCPay urged users running the LND Lightning implementation to update their servers to version 2.4.2 or take them offline after attackers gained access to credentials that could control connected Lightning wallets and move funds.

The incident highlights risks beyond the Bitcoin blockchain itself as merchants increasingly rely on third-party software and Lightning nodes to process payments.

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