The self-custodial Bitcoin Lightning Network wallet disabled infrastructure after an incident and founder Evan Kaloudis said no customer funds were lost and no Lightning vulnerability was found. Zeus Wallet, a self-custodial Bitcoin Lightning Network wallet, took its infrastructure offline after a cybersecurity incident on Wednesday, and is auditing its systems before restoring services. In an X post announcing the incident, Zeus 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. He said that customers whose Lightning Service Provider (LSP) channels closed during the incident will receive replacement channels once services resume. Read more
While only 12 of 46 documented attempts resulted in payment, data leaks and attacks on relatives are widening the physical risks facing crypto holders. Criminals stole more than $30 million through physical attacks on crypto holders in the first half of this year, putting the year on pace to surpass the record $58 million stolen in 2025. In a Chainalysis report released Thursday, the blockchain analytics firm said that 46 violent crypto-related incidents had been documented globally through late June, up from 40 during the same period in 2025. The incidents include kidnappings, home invasions and hostage situations, collectively known as “wrench attacks.” The findings suggest wrench attacks are increasing, expanding the risks facing crypto holders beyond custody and asset management to their physical safety, homes and families. Read more