Second Loses 0.75 BTC in Hack, User Funds Unaffected

Second, an Ark Protocol implementation project, disclosed that its server was exploited on Monday, losing 0.75 BTC of its own funds, approximately $62,300. The team stated that user funds were unaffected and that fixes were completed within hours. The attacker subsequently made continued attempts to withdraw more funds from the project and launched denial-of-service attacks. On Tuesday, Second stated that the attack could reduce the ability of Bark-based wallets to receive Lightning Network transfers. Second noted that the vulnerability lay in the Ark server's boarding process, allowing the attacker to register and exit related boards using only their own signature, while spending the same set of VTXOs from the node via the Lightning Network. The attacker also attempted to use bitcoin linked to the September 19 Blink Wallet security vulnerability, but was unsuccessful.