Last week in Bitcoin:
→ A record $6.3B breach of Binance on Oct 29, drove Bitcoin to a six-week low and triggered over $1.5B in liquidations; the haul included roughly 18,270 BTC.
→ Threshold paused the tBTC bridge on Oct 30 after a critical Linux kernel flaw, tBTC stayed fully backed, and Aave froze its $136M tBTC market.
→ US spot Bitcoin ETFs swung to a net weekly outflow of about $202M after a $643M single-day exit on Oct 30 led by IBIT and FBTC.
→ Strategy resumed buying with 811 BTC and repurchased $208M of STRC to reach 849,327 BTC.
→ Strive bought 6,182 BTC to reach 43,000.
→ Bitcoin Core patched three AI-found flaws, one that crashes Windows and macOS nodes.
→ BTCPay Server urged operators on version 2.4.1 or older to shut down after hot-wallet drains.
hackers are draining bitcoin and litecoin straight out of merchants' payment servers. the servers you run yourself.
here is what is happening. btcpay server, the self hosted open source payment processor thousands of merchants use to accept crypto, is warning users to update immediately.
attackers are stealing bitcoin and litecoin from hot wallets on instances running version 2.4.1 or earlier.
the timeline makes it worse. in august, btcpay disclosed that a critical vulnerability had already been weaponized by attackers to steal funds.
they shipped a fix in version 2.4.2 on august 7.
the attackers now hitting servers are using a different method to exploit the same weakness. they went around the patch.
nobody knows when this campaign started. reports only began surfacing around november 1.
that means unknown servers could have been leaking funds for weeks while their owners thought a two month old patch kept them safe.
the cruel part is who gets hit. btcpay exists so merchants do not have to trust a third party exchange.
you run your own server, you hold your own keys, you stay sovereign.
except the sovereign server also needs patching, monitoring and a security team, and most small merchants have none of those.
here is the twist that stings. self custody was supposed to be the safe harbor after every exchange hack. but self hosted means self secured.
the binance thief needed north korea level resources to take $6.3 billion. the btcpay thief just needed you to skip an update.
check your btcpay version today. if it is 2.4.1 or older, update to the latest release now, then audit your hot wallet history for withdrawals you did not make.
and set a reminder to patch the software that guards your money, because the people trying to take it never miss an update.
Today's hacks
Mercado Bitcoin:
$48.5M across 10 chains.
Hot wallets drained in a 34 minute window.
35,853 Ethereum deposit addresses emptied.
Tether and Paxos froze $7.3M.
Circle froze nothing.
Supermarket fridges:
Europe, round two.
Sweden, Estonia, Ireland, Luxembourg, Belgium.
Food set to 50°C.
SuperValu pulled fresh stock from 13 stores.
Same pattern as France three weeks ago 350 locations, tens of millions in damage.
12 DeFi sites:
$138K via Name.com.
Step Drainer.
One registrar, one flaw, twelve victims.
EU entity:
$106M. Unnamed European org, multiple exchanges.
Pulled as USDT and USDC, turned into ETH, aggressively converted to Monero.
ZachXBT says not Lazarus.
No victim named.
BTCPay Server:
BTC and LTC stolen. Old versions still running, patches existed, nobody applied them.
Not an exploit.
Negligence at industrial scale.
Chainalysis:
AI driven breach.
Researcher names leaked.
The watchers got watched.
New week, same script.
If you still run BTCPay Server below version 2.4.2 don't just upgrade, read this and make sure you not update an already compromised server. x.com/BtcpayServer/s…
If you're still running a BTCPay Server version below 2.4.2, don't rush to upgrade. Read this first and make sure you're not updating an already compromised server. x.com/BtcpayServer/s…
if you're running an old self-hosted btcpay server, check your version now.
attackers have reportedly stolen bitcoin and litecoin from hot wallets on instances running version 2.4.1 or earlier.
the uncomfortable part: the vulnerability had already been patched in august, but outdated installations remained exposed.
open source doesn't automatically mean secure.
patching, monitoring and key isolation still matter.
affected operators should follow the project's latest recovery guidance.
source: blog.btcpayserver.org
CRYPTO SECURITY:
BTCPay Server flaw exploited to drain $1.6M from merchant hot wallets.
Hackers targeted outdated BTCPay Server installations (v2.4.1 and earlier) to steal Bitcoin and Litecoin from merchant hot wallets across 682 sweeps, prompting core developers to urge node operators to shut down instances and update to patched releases. 🪙⚠️