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BTCPay Server: Vulnerability in the old version led to theft of funds from hot wallets, users are advised to migrate immediately

The open-source Bitcoin payment processing tool BTCPay Server has received multiple reports of unauthorized fund theft from its Bitcoin and Litecoin hot wallets on the platform. The project team released an investigation update confirming that the attack targeted servers running BTCPay Server version 2.4.1 or earlier. The attackers exploited a vulnerability that was fixed in version 2.4.2 on August 7, gaining administrative access to the servers through various methods and draining the hot wallet funds.BTCPay Server founder Nicolas Dorier confirmed that only servers running versions prior to 2.4.2, particularly version 2.4.1, were affected; users running the latest version 2.4.7 have not reported any credible losses. Some affected service providers, including LunaNode, have automatically shut down at-risk older instances. The official recommendation for users still using version 2.4.1 or earlier is to immediately transfer any remaining funds in old hot wallets to a new wallet created with a completely new mnemonic, take the old server offline while retaining relevant logs, and then install the latest version on a new virtual machine and connect the new wallet, ensuring not to restore the old server entirely to the new machine.Simply updating the software version is not enough to eliminate the risk, as attackers may have gained persistent access to the old server. Funds stored outside the server, such as those in hardware wallets, were not affected by this incident. The vulnerability is related to a flaw fixed in August of this year, when attackers had manipulated nodes by obtaining LND administrative credentials. As of now, this vulnerability has not been assigned a CVE number and is not listed in CISA's known exploited vulnerabilities catalog.

Zhao Changpeng: It is expected that the bull market will drive more capital inflow, and retail investors are advised to actively learn about asset security protection

Binance founder Changpeng Zhao stated in an interview, "Typically, after an attack event, some users do choose to withdraw their funds. Some large institutions are required by internal policies to withdraw funds, and some retail investors may follow suit.However, after withdrawing, users face another question: where is it safer to store their money? I personally have not suffered any financial losses on Binance because Binance has absorbed the losses caused by this incident. This event is indeed frightening, but the question is, where can I transfer my funds? Recently, several hardware wallets have also been attacked, including one supply chain attack and another involving the mnemonic phrase generation process. This means that even if users make no operational mistakes and strictly follow all security protocols, purchasing hardware wallets and generating mnemonic phrases, they could still lose all their funds five years later without any fault, and no institution will bear the losses.The first wave of impact has already occurred, and Binance has also been attacked and completed repairs. Next, the second wave of impact may affect smaller platforms, which may not necessarily be more secure. Therefore, some users may initially choose to withdraw, but later realize that they need to manage their mnemonic phrases and store their assets themselves. In fact, less than 10% of the funds flowed to other centralized trading platforms, which means that most of the funds may have been transferred to users' own self-custody wallets. However, using self-custody wallets is not without risks. Users must properly back up their mnemonic phrases and ensure they do not get lost or damaged.In fact, most losses suffered by users when self-custodying assets are not even caused by hacker attacks. Therefore, after weighing their options, users may reconsider depositing their funds back into trading platforms. In fact, within less than 24 hours, we have already seen a change in fund flows. I also saw a tweet earlier showing that the fund flow statistics for the platform have turned into a net inflow on an hourly basis, which actually reflects the strength of the platform and users' trust in it. I believe that in the coming weeks and even months, fund flows will continue to fluctuate. As we mentioned before, if the market re-enters a bull market, we will see more funds flowing in.I believe there are many aspects that need attention. First, the speed of technological development is very fast, especially AI, which is growing at an astonishing rate, and the trend of exponential growth even exceeds people's understanding. Secondly, I believe that the entire cryptocurrency industry is still under-invested in the security field. Frankly speaking, many AI security tools are not yet truly applied in the industry.Therefore, I encourage all practitioners to increase their investment in these areas, including increasing the number of security engineers, introducing more AI tools, and closely collaborating with AI security service providers. I believe these are crucial. For ordinary users, what we call retail investors, I suggest everyone actively learn about different security tools, understand how to protect their assets, and closely follow industry trends and relevant news. Especially at this current stage, all of this is very important."

Placeholder Partner: The current market resembles an early bull market opportunity; long-term investors are advised to systematically accumulate tokens

Co-founder Chris Burniske stated that long-term investors should not repeatedly struggle with entering or exiting the market, but should systematically accumulate tokens over time, and not confuse long-term investing with short-term trading. He suggested using his most successful investment targets as a reference, calculating target holdings based on the total supply of network tokens.He gave an example that the total supply of ETH is about 120 million tokens. If one previously held 10 ETH, based on the network holding ratio, the total supply of SOL is about 636 million tokens, corresponding to about 53 tokens; the total supply of TIA is about 1.16 billion tokens, corresponding to about 97 tokens. If one wishes for the TIA network share to reach 10 times the original ETH holding share, approximately 970 TIA would be needed. For ZEC, since its supply is similar to BTC, the ideal BTC holding quantity can be used as a reference for accumulation targets.Regarding the current market, he noted that many crypto assets have fallen 20% to over 40% from their highs, while BTC has dropped less than 10%. He is more inclined to believe that BTC's previous relative resilience has led to significant adjustments in assets with lower risk appetite, making the current situation more like an opportunity in the early stages of a bull market rather than a warning signal of a bull market trap. He also reminded that one should consider the possibility of further price declines, suggesting to invest remaining cash in batches and determine the investment ratio based on the probability of local bottoms at different price levels; even if some preset price levels are not reached and cash remains, it can still be acceptable.

first_img The U.S. SEC has revised the quorum rules, potentially concentrating the authority for cryptocurrency regulation in the hands of a few commissioners

On September 30, the U.S. Securities and Exchange Commission (SEC) released final rules adjusting the quorum requirement to only one commissioner in most cases to constitute a quorum, which took effect on October 2. The SEC stated that this move aims to enhance the flexibility and finality of institutional rule-making. Earlier this month, Commissioner Hester Peirce resigned, leaving only Chairman Paul Atkins and former Acting Chairman Mark Uyeda as the two remaining commissioners, while the agency's statutory seats are five.The leadership vacancy at the U.S. Commodity Futures Trading Commission (CFTC) is even more pronounced, as Michael Selig has been the only Senate-confirmed chairman and commissioner since December 2025. Both agencies were originally set to have five commissioners. In terms of rule-making, the SEC proposed in August to provide a safe harbor for tokens not to be classified as "investment contracts," and the CFTC followed up in October, with Selig stating that he would utilize existing statutory authority to advance cryptocurrency regulation through proposed rules regarding exchanges; Atkins also mentioned on October 2 that more regulatory proposals would be forthcoming.On October 5, the Financial Times published a commentary by Robin Wigglesworth, pointing out that with only two commissioners, if one needs to recuse themselves or is unable to perform their duties, a single commissioner can pass formal rules applicable to a securities market worth trillions of dollars. Uyeda subsequently responded in the Financial Times, stating that the SEC's commitment to its mission has not changed, and the rule modification merely clarifies that when all but one commissioner must recuse themselves, the commission can still constitute a quorum.

first_img Metaplanet revises its capital allocation policy, planning to invest 10% to 15% of its assets into strategic investments

According to Cointelegraph, Japanese investment and Bitcoin treasury company Metaplanet announced a revised capital allocation policy, proposing to invest 10% to 15% of total assets into strategic investments, including mergers and acquisitions and income-generating assets. It also launched a net interest income strategy to allocate capital to income-producing assets, using net interest income to support Bitcoin accumulation and dividend payments. Bitcoin remains its core treasury reserve asset, accounting for 85% to 90% of total assets. The company stated that this move aims to enhance financing capability and credit quality to increase the Bitcoin holdings per share.As this financing model was introduced, shareholders expressed concerns about Metaplanet's governance and complex capital structure. The company released five corrected securities filing documents last Friday, clarifying that CEO Simon Gerovich does not hold a majority voting power in Metaplanet shareholder MMX Ventures.Anonymous shareholder Bitcoin Pharaoh subsequently called for the company to clearly disclose the ownership of MMX Ventures, explain the 23.8% shares registered as indirectly held by Gerovich, and reveal the identities of two unnamed executives who exercised 18.8 million shares from the 10th stock option pool.In early September this year, management faced criticism from shareholders for expanding the 10th executive stock option pool from 46 million shares to nearly 319.5 million shares. On September 11, Metaplanet proposed to reduce the option pool by 41%, decreasing potential shares by 131.3 million to 188.19 million shares, and resetting the conversion ratio from 1:696 to 1:410.

first_img Florida requests the court to prohibit OpenAI from unsupervised development of new models

According to a report by Reuters on September 28, Florida Attorney General James Uthmeier requested a judge on Monday to prohibit OpenAI from developing new artificial intelligence models without external oversight. This request is part of the state's lawsuit accusing OpenAI of harming children. Uthmeier also asked the court to order OpenAI to prohibit minors from using ChatGPT and to prevent the company from attributing human characteristics to the chat platform.Florida sued OpenAI in June, accusing it of misrepresenting the safety of ChatGPT, claiming that the platform provided information to school shooters, offered guidance on self-harm, and made young users addicted. The lawsuit was triggered by a shooting incident at a university in Tallahassee last year, as well as several other incidents in other states where it was alleged that ChatGPT provided information to individuals who later committed acts of violence. Uthmeier, a Republican, is also the first state attorney general to sue OpenAI over its impact on young users, and the company is facing related lawsuits filed by individuals and families.OpenAI spokesperson Drew Pusateri stated that the company has paused training its most powerful models and will not resume until additional safety measures are implemented, expressing a willingness to work with Florida and other states to promote pragmatic policies applicable across the industry. The company denies responsibility in these cases, stating that the chatbot provides information widely available online and continuously updates its safety tools. The request also cited recent comments from a former OpenAI employee and a current board member, stating that the development of artificial intelligence could lead to the end of humanity and must be slowed down.

first_img Bitget updates on the security incident progress: the stolen amount is revised to 387.5 million USD, and the withdrawal recovery time will be announced before 12 PM tomorrow

Bitget TradFi Chief Growth Officer Xie Jiayin issued an update on the platform's security incident, stating that the withdrawal time will be announced before noon tomorrow. The security team has identified the hacker's attack path and methods, and has grasped the details of how the attacker bypassed security measures, coming very close to tracing the source of the attack. The incident investigation by third-party security teams Mandiant and SlowMist is still ongoing, with a detailed report pending from the security team.On-chain tracking confirms that approximately $387.5 million has been transferred to the hacker's address, previously estimated at $351.6 million. This revision includes ZEC and TRX, and no other unauthorized transfers have been found. Xie Jiayin stated that the stolen funds at the platform level will be fully covered by the Bitget User Protection Fund, ensuring that user assets are not subject to any losses.Bitget has officially launched a fund recovery bounty program, offering a 5% bounty for voluntarily freezing the attacker’s funds and a 5% bounty for voluntarily recovering funds. The bounty also applies to assistance already provided. The platform has published the attacker's address, a real-time tracking dashboard, and a submission portal, with relevant information also available for submission through Bybit's Lazarus bounty platform.
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