BTCPay Server Hit with Critical Vulnerability Amid Bitcoin Ecosystem Woes

The Bitcoin ecosystem is facing another security threat after the recent Coldcard exploit. BTCPay Server, an open-source cryptocurrency payment processor, announced it's facing an ongoing attack by unknown threat actors that can result in fund loss.

The vulnerability was disclosed by the Bitcoin Red Team, a voluntary security group that found thousands of vulnerabilities across hundreds of open-source projects after the Coldcard hack. BTCPay Server urged users to update to version 2.4.2 or shut down servers to prevent further losses.

Following the Coldcard hack, multiple nodes were drained in what appears to be a targeted attack. Zack Herbert, co-founder and CEO of Foundation, builders of the Passport Prime device, reported that their node was drained overnight, while Hodlonaut found that the Citadel 21 lightning node funds were also swept.