Zeus Wallet Offline After Cyberattack; Funds Intact

Zeus Wallet, a self-custodial Bitcoin Lightning Network wallet, took its infrastructure offline on Wednesday after a cybersecurity incident and began auditing systems before restoring services.

The company posted the incident on X and in a blog post, saying it mitigated the attack within hours and found no evidence the incident affected external Lightning node software.

In a blog post, founder Evan Kaloudis wrote, “Based on our investigation so far, we believe this incident was limited to Zeus infrastructure.” The company did not disclose the technical nature of the attack or give a timeline for when services will resume.

Zeus said its core custody protections remained intact during the incident. Customers whose Lightning Service Provider (LSP) channels closed will receive replacement channels once operations restart, the company added.

Earlier in the week Zeus disabled its swap feature after Boltz, a non-custodial Bitcoin swap service, halted operations. The swap suspension and the cybersecurity incident are separate but both reduced functionality for some users.

Zeus said it is reviewing its infrastructure and plans to work on trusted execution environments, also known as enclaves, and on the Validating Lightning Signer (VLS) project to strengthen signing infrastructure and reduce single points of failure.

Requests for further detail have not produced additional information as the team continues its internal review. Zeus has not set a date to restore full service.