BTCPay restricts remote Lightning access after attackers steal funds

BTCPay Server has temporarily restricted public remote connections to Lightning Network nodes running Lightning Network Daemon (LND) software after attackers exploited a critical vulnerability to obtain credentials and move funds. 

Version 2.4.2 installs LND version 0.21.1 and automatically regenerates the macaroon credentials on standard BTCPay installations. The project advised operators to check for unauthorized payments, unexpected channel closures, unfamiliar peers and discrepancies in their onchain or Lightning balances.

The BTCPay breach is the latest security incident involving widely used Bitcoin products, following a Coldcard hardware-wallet flaw linked to more than $100 million in confirmed losses. The separate incidents affected software surrounding Bitcoin rather than the network’s underlying protocol.

Update automatically rotates Lightning credentials

BTCPay said the vulnerability allowed an unauthenticated remote attacker to obtain “macaroon” credential files used to control LND, an implementation of the Lightning Network. The project said the exposed credentials could allow attackers to take control of an LND node and move its funds.

According to the project’s security advisory, version 2.4.2 installs LND version 0.21.1 and automatically regenerates macaroon credentials on standard BTCPay installations. It advised operators to check for unauthorized payments, unexpected channel closures, unfamiliar peers and discrepancies between their records and onchain or Lightning balances. 

Related: Coldcard exploit pushes July losses to $247M as second-worst month of 2026

BTCPay also said operators exposing LND through their own reverse proxy, Tor service, forwarded port, or another route outside BTCPay must rotate their credentials separately. The project said installing the update does not close access routes managed independently by the operator. 

At least two operators publicly reported losses. Neither operator disclosed the amount lost. 

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