Blink Wallet Reports Breach of Limited Number of Custodial Accounts

Blink Wallet, a Lightning Network payments platform, said an attacker infiltrated a limited number of custodial accounts and transferred the funds held in them. The company said every affected custodial account would be fully reimbursed.

Limited Custodial Account Breach

Blink Wallet disclosed the incident on Saturday. The platform provides both custodial and non-custodial wallet services, but the company said the attack was limited to a small number of custodial accounts.

In a custodial arrangement, a service provider holds or manages users’ funds on their behalf. By contrast, non-custodial wallets generally allow users to retain control of their private keys.

Blink Wallet did not disclose the total amount transferred or provide further details about how the attacker gained access to the accounts.

Blink Wallet Pledges Full Reimbursement

The company said it would make every affected custodial account whole. The announcement did not specify when reimbursements would be completed or outline additional security measures implemented in response to the incident.

The disclosure comes as operators of Lightning Network applications continue to face security challenges. The Lightning Network is a layer-2 payment system designed to enable faster and lower-cost Bitcoin transactions through off-chain payment channels.