BTCPay Warns of Critical Flaw Under Active Attack, Urges Immediate Update

BTCPay Server has issued an urgent warning to users about a critical vulnerability in their Bitcoin payment system that is currently under active attack. Attackers are exploiting this flaw, which could lead to stolen funds, and BTCPay Server advises administrators to update to version 2.4.2 immediately or shut down their servers until the update can be applied.

BTCPay Server has not disclosed how the vulnerability works, when the attacks began, or how many servers have been compromised. The company credits Bitcoin Red Team members with reporting the issue and urges users who generated hot on-chain wallets in BTCPay to move those funds and recreate the wallet.

The warning comes as AI-powered security threats continue to rise in the crypto space. Recently, several high-profile incidents involving AI-assisted attacks have occurred, including a vulnerability in Zcash that could have allowed for unlimited counterfeit coins and over $100 million in stolen Bitcoin linked to a firmware flaw in Coldcard makers Coinkite.

BTCPay Server has not commented on whether AI was involved in the current attack. The company's update instructions advise users to replace credentials known as macaroons, recreate the macaroons.db file, and refresh authentication strings for other Lightning Network backends.