Zeus Wallet Taken Offline After Cyberattack, Founder Says Funds Are Safe

Zeus Wallet disabled parts of its infrastructure after a cyberattack, with founder Evan Kaloudis saying no customer funds were lost. Kaloudis also said the team found no vulnerability in the Lightning Network itself.

Zeus Wallet Taken Offline After Cyberattack, Founder Says Funds Are Safe

What happened?

Zeus Wallet disabled parts of its infrastructure after a cyberattack, with founder Evan Kaloudis saying no customer funds were lost. Kaloudis also said the team found no vulnerability in the Lightning Network itself.

Why it matters

The development matters because Lightning wallets are part of Bitcoin’s broader payments ecosystem, where reliability and security are central to user trust. A service interruption at a self-custodial wallet can still disrupt access and operations, even when users retain control of their funds and no customer losses are reported.

Zeus Wallet, a self-custodial Bitcoin Lightning Network wallet, was taken offline after a cyberattack affected its infrastructure. Founder Evan Kaloudis said no customer funds were at risk and that the incident did not result in any lost customer funds.

The development matters because Lightning wallets are part of Bitcoin’s broader payments ecosystem, where reliability and security are central to user trust. A service interruption at a self-custodial wallet can still disrupt access and operations, even when users retain control of their funds and no customer losses are reported.

According to the source material, Zeus disabled infrastructure in response to the incident. The company’s position is that the attack did not expose a flaw in the Lightning Network, narrowing the issue to Zeus-related systems rather than the underlying payment network.

Kaloudis’ comments also help separate two concerns that often get conflated during crypto security incidents: whether funds were lost and whether a core protocol was compromised. In this case, the reported statements indicate no customer funds were lost and no Lightning vulnerability was found.

Zeus’ next steps were not detailed in the supplied material. For users, the key confirmed facts are that the wallet went offline after a cyberattack, the team said customer funds were not at risk, and the incident was not attributed to a Lightning Network vulnerability.

Source: Cointelegraph

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