BTCPay Server has launched a $190,000 bounty for information on a hack that drained merchant wallets, aiming to recover stolen bitcoin.
BTCPay Server has announced a bounty program in response to a recent hack that drained merchant wallets, offering a reward of up to 3 BTC, equivalent to around $190,000, for information leading to the recovery of stolen funds.
Details of the Bounty
The initiative promises to compensate individuals with 10% of any recovered bitcoin, with a cap of 3 BTC. This offer is open to anyone who can provide information regarding the hacker or the stolen funds. BTCPay has set up secure communication channels for those interested in reporting information.
Should multiple reports facilitate the recovery of funds, the bounty will be allocated among the affected merchants based on their losses and the value of the information provided.
Background of the Incident
The security breach occurred when hackers exploited vulnerabilities to gain access to LND Lightning node credentials, allowing them to drain wallets linked to merchants, including hardware wallet manufacturer Foundation and the publication Citadel21. While specific loss figures have not been disclosed, the impact on these businesses is significant.
BTCPay is collaborating with exchanges, blockchain analytics firms, and law enforcement to trace the stolen assets, urging merchants to report losses to local authorities and any relevant tracking services.
Rewarding Security Researchers
In recognition of the efforts by the Bitcoin Red Team, who identified the security flaw, BTCPay has pledged donations of 0.21 BTC each to developer Craig Raw and the Bitcoin Red Team fund. The volunteer initiative employs AI technology to enhance security in bitcoin projects and has successfully identified thousands of vulnerabilities.
In light of this incident, BTCPay has advised merchants to secure their assets in cold wallets and to regularly transfer excess funds from hot wallets, particularly amid the ongoing threats in the cryptocurrency landscape.
