Zeus Wallet pulls the plug after cyberattack — Lightning still standing ⚡

Zeus Wallet, a self-custodial Bitcoin Lightning Network wallet, took its infrastructure offline following a cybersecurity incident on Wednesday and is auditing its systems before restoring services. The company said the attack did not put customer funds at risk and that it had no evidence the incident affected Lightning node software.

"Based on our investigation so far, we believe this incident was limited to Zeus infrastructure," Zeus founder Evan Kaloudis said in a company blog post. According to Kaloudis, Zeus mitigated the attack within hours, though the firm did not disclose the nature of the intrusion or provide a timeline for resuming operations.

Zeus said customers whose Lightning Service Provider (LSP) channels closed during the incident will receive replacement channels once services are restored. Cointelegraph requested additional details from Zeus but had not received a response by publication.

The incident comes shortly after Zeus's Monday announcement that it would disable swaps following Boltz's decision to halt operations. Boltz, a non-custodial Bitcoin swap service, said its platform would remain disabled until further notice.

Zeus said the episode reinforces its ongoing work on trusted execution environments, also known as enclaves, and the Validating Lightning Signer (VLS) project to strengthen its infrastructure. The disclosure follows a separate incident in which Coldcard hackers transferred 64 $BTC and 200 $ETH to cryptocurrency mixers.