The self-custodial Bitcoin Lightning Network wallet, Zeus Wallet, has ceased operation of its infrastructure following a cybersecurity incident reported on Wednesday. The company is currently conducting an audit of its systems before initiating service restoration. Initial assessments confirm no customer funds were compromised and no vulnerability within the Lightning Network was detected.
Evan Kaloudis, founder of Zeus Wallet, is overseeing the company’s response to the incident. He has stated that investigations to date suggest the attack was contained solely to Zeus infrastructure. According to Kaloudis, the situation did not result in any risk to customer funds currently held within the wallet.
Following the disruption, Zeus Wallet intends to provide replacement Lightning Service Provider (LSP) channels for clients whose channels were closed during the incident. The company indicated that resuming operations will be contingent upon completion of its internal system audit process. This action further highlights ongoing efforts related to trusted execution environments.
The cybersecurity event reportedly involved a transfer of 64 BTC and 200 ETH by individuals associated with the Coldcard hacking group. Cointelegraph has reported on the incident. Confirmation from Zeus Wallet remains focused on securing its infrastructure and preventing recurrence.
The company’s actions underscore the importance of rigorous security protocols within self-custodial cryptocurrency wallets, particularly those operating on emerging technologies such as Lightning Networks. A return to normal service will be subject to a thorough validation process.
Written by James Tobias
Bitcoin Desk
