TLDRZeus Wallet suspended all infrastructure operations following a security breach detected on August 5, 2026Company founder Evan Kaloudis stated that no user assets were compromised or endangeredInvestigation revealed no security flaws in the Bitcoin Lightning Network node infrastructureAffected users whose Lightning Service Provider channels closed will receive new channelsThe company hasn’t announced when operations will be restoredOn August 5, 2026, Zeus Wallet, a self-custodial Bitcoin Lightning Network application, made the decision to take down all of its infrastructure after identifying a cyberattack targeting its systems. According to the company, the breach was successfully contained within several hours, though management opted to maintain the service suspension while conducting a comprehensive security review.ZEUS infrastructure is temporarily offline following a cybersecurity incident.The attack has been mitigated. We are keeping services offline while we conduct a comprehensive audit of all systems before restoring operations.**Customer funds were neither lost or at risk.**— ZEUS (@ZeusLN) August 5, 2026In a detailed statement published on the company’s official blog, founder Evan Kaloudis explained that preliminary findings suggest the intrusion was confined exclusively to Zeus’ internal systems. Importantly, he emphasized that no user funds were stolen or placed in jeopardy, and investigators have discovered no exploitable vulnerabilities within the Lightning node software itself.The wallet functions using a self-custodial architecture, which means individual users maintain direct control over their own cryptocurrency holdings instead of entrusting them to the platform provider. According to Zeus, this fundamental design choice played a critical role in protecting user assets throughout the security incident.Zeus has refrained from revealing specific details about the attack vector or how unauthorized parties managed to penetrate its systems. Additionally, the organization has not provided any estimated timeframe for bringing its services back online.Replacement Channels for Affected UsersA subset of Zeus users experienced the unexpected closure of their Lightning Service Provider channels as a consequence of the service interruption. The company has committed to providing these users with replacement channels after normal operations are restored and customer requests can be addressed.Users impacted by the channel closures have been instructed to reach out to customer support via the assistance section within the Zeus mobile application. The organization acknowledged that support response times might be extended beyond normal levels due to the surge in incoming support tickets.According to Kaloudis, the security incident has validated the company’s ongoing development efforts focused on trusted execution environments, commonly referred to as enclaves. He also highlighted the Validating Lightning Signer project as a key component of the security enhancements Zeus has been implementing to prevent similar attacks in the future.Service Disruption Follows Boltz ShutdownThe cyberattack-related shutdown occurred merely days after Zeus implemented another significant service modification. Earlier in the week on Monday, the wallet platform deactivated its swap features following an announcement from Boltz, a non-custodial Bitcoin swap service provider, that it would be suspending operations indefinitely.Zeus confirmed that the removal of swap functionality was a direct result of Boltz’s operational suspension. While both disruptions occurred within a short timeframe, the company has made separate announcements for each situation and has not suggested any connection between the two incidents.Zeus remains dedicated to finalizing its comprehensive internal security assessment before reinstating any infrastructure components. The processing of replacement Lightning channels for impacted users will commence once the platform returns to operational status.As of now, the company has not announced a target date for the resumption of standard services.The post Zeus Wallet Suspends Operations Following Security Breach, Customer Funds Secure appeared first on Blockonomi.