Blink Wallet pauses services after custodial account breach

Blink Wallet, a Bitcoin Lightning Network payments platform, paused all services on September 19 following a security breach. An attacker successfully accessed and drained funds from a limited number of the company’s custodial accounts.

The company reported that a “few dozen” custodial accounts were affected, though it stated that the large majority of funds remain secure. Non-custodial wallets, where users manage their own private keys, were not impacted by the incident. Blink has already deployed a patch to address the vulnerability and is currently investigating the precise breach vector.

Blink Wallet has committed to making all affected users whole. The incident occurs as the company is in the process of winding down custodial services in certain regions due to regulatory changes, encouraging users to migrate to non-custodial options.