# Security Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Security", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Cyprus Plans to Conduct On-Site Inspections of Cryptocurrency Storage Facilities

The Cyprus Securities and Exchange Commission (CySEC) will conduct a series of on-site and documentary inspections of licensed Crypto-Asset Service Providers (CASPs) from the second half of 2026 to the first half of 2027. This initiative, coordinated by the European Securities and Markets Authority (ESMA) under its 2026 Common Supervisory Actions, aims to strengthen the operational resilience of digital asset custody services in Cyprus and across the EU. The audits will focus on CASPs authorized for custody, assessing their operational security, technical infrastructure maturity, and management of risks associated with distributed ledger technology. Key areas of scrutiny will include governance and control systems, private key and wallet storage security, access controls, transaction monitoring, incident response, smart contract security, and third-party risk management. CySEC stated that compliance readiness will be a factor in selecting firms for inspection. The action aligns Cyprus with broader EU supervisory priorities, which view operational resilience in digital asset custody as critical for financial stability and investor protection. This standardized enforcement framework seeks to harmonize regulatory approaches as the crypto ecosystem integrates further with traditional finance.

cryptonews.ru08/09 11:24

Cyprus Plans to Conduct On-Site Inspections of Cryptocurrency Storage Facilities

cryptonews.ru08/09 11:24

Bitcoin BIP-110 Fork Could Expose Holders to Replay Attacks

Bitcoin developer Kevin Loewack has warned that a potential network split due to the BIP-110 protocol could lead to BTC holders losing their coins. The risk arises if users attempt to sell coins created by the fork without first splitting their balances. In a network split, two transaction histories with identical balances at the fork point would emerge. For example, an investor with 10 BTC before the fork would control 10 coins on each resulting chain. However, both networks can recognize the same signed transaction. A buyer could copy the transaction used to transfer forked coins and broadcast it to the main Bitcoin network. If accepted, the seller would unintentionally send the same amount of genuine BTC to the buyer's address. To conduct safe transactions, investors must "split" their coins by obtaining and spending them only on one specific chain. Wallet providers or exchanges may develop tools to address this issue in the future. BIP-110 (Reduced Data Temporary Softfork) is a proposal to temporarily limit non-financial data in the blockchain for one year to combat spam and reduce network node load. Its activation requires 55% miner support over a specific block period. As of mid-July 2026, support remains below 2%, with an activation deadline in August 2026.

cryptonews.ru08/09 11:23

Bitcoin BIP-110 Fork Could Expose Holders to Replay Attacks

cryptonews.ru08/09 11:23

BTCPay restricts remote Lightning access after attackers steal funds

BTCPay Server has temporarily restricted public remote connections to its integrated Lightning Network nodes after attackers exploited a vulnerability to steal funds. The flaw allowed unauthorized access to the credential files ("macaroons") controlling the Lightning Network Daemon (LND), enabling attackers to take control of nodes and drain funds. The update to version 2.4.2 automatically regenerates these credentials for standard installations. BTCPay advises node operators to check for unauthorized transactions, unexpected channel closures, and balance discrepancies. At least two operators, including Foundation CEO Zach Herbert and Citadel21, have publicly reported losses from their Lightning nodes being swept. This incident follows other recent security issues in the Bitcoin ecosystem, such as a Coldcard hardware wallet flaw.

cointelegraph08/09 05:55

BTCPay restricts remote Lightning access after attackers steal funds

cointelegraph08/09 05:55

US spot Bitcoin ETFs attract $1 billion — highest since April

Spot Bitcoin ETFs in the U.S. have registered their strongest weekly net inflow in months, attracting approximately $1 billion—the highest since April. This rebound comes after a period of fluctuating investor interest and uncertainty regarding crypto regulation and self-custody security. Analyst Eric Balchunas characterized this period as Bitcoin's "quiet IPO," a term describing a generational shift where early investors sell into demand from ETFs and institutions, suppressing price volatility despite significant new capital. The recovery is particularly notable following a major security breach involving the Coldcard hardware wallet, which led to the theft of roughly $116 million in Bitcoin. Balchunas suggested this incident may, over time, enhance the appeal of spot Bitcoin ETFs for investors wary of managing technical security themselves, though a direct causal link to the recent inflows is not proven.

cryptonews.ru08/08 22:06

US spot Bitcoin ETFs attract $1 billion — highest since April

cryptonews.ru08/08 22:06

US spot Bitcoin ETFs post best week since April with $1B inflows

US spot Bitcoin ETFs recorded their strongest weekly performance since April, attracting approximately $1 billion in net inflows. This surge signals a sharp rebound in investor demand after a period of uneven flows and coincides with renewed focus on cryptocurrency security. Analyst Eric Balchunas noted this as the third-best week since last October, a period he likened to Bitcoin's "silent IPO," where early investors sold to new institutional buyers like ETFs. The rebound follows a major security incident involving the Coldcard hardware wallet, which led to the theft of around $116 million in Bitcoin. Balchunas suggested this event may be strengthening the appeal of ETFs for investors wary of the technical risks associated with self-custody, though he acknowledged this link is not definitively proven. The weekly inflow highlights renewed institutional interest amid ongoing regulatory uncertainty in the digital asset space.

cointelegraph08/08 16:31

US spot Bitcoin ETFs post best week since April with $1B inflows

cointelegraph08/08 16:31

July Became One of the Worst Months for the Crypto Industry Due to Theft of Over $247M

July 2026 was one of the worst months for the crypto industry due to hacks totaling over $247 million, making it the second-largest loss of the year so far. The significant losses were largely driven by several hardware wallet exploits targeting Coldcard, which Galaxy Digital reports led to over $130 million in losses. Analysts confirmed three major attacks on Coldcard, with a potential fourth wave under investigation. According to DefiLlama, the losses from Coldcard alone were approximately $115 million. This series of attacks highlights that even cold storage is not immune to technological risks that can endanger thousands of wallets simultaneously. Other notable incidents in July included the $9 million hack of the Bonzo Lend DeFi protocol, a $2.6 million theft from a Cardano-based SecondFi wallet, a $24 million theft from the Arbitrum-based AFX exchange, and a $7.5 million exploit via the Verus Ethereum Bridge.

cryptonews.ru08/08 15:27

July Became One of the Worst Months for the Crypto Industry Due to Theft of Over $247M

cryptonews.ru08/08 15:27

Developer Warns of Risk of Losing Bitcoins Due to BIP-110

Blockchain expert Kevin Loaec has warned of a security risk where attempting to sell coins from a potential BIP-110 soft fork could lead to the loss of real Bitcoin. Following a blockchain split, a double balance situation arises, with the same assets existing on both chains. In the early stages, transactions are valid on both networks. By signing a transaction to sell the forked tokens, a seller inadvertently provides a ready-made template for an identical transaction on the main Bitcoin network. This could allow malicious buyers to replay the transaction, causing the equivalent amount in real Bitcoin to be spent from the seller's address, with fees deducted twice. Loaec advised that the only safe strategy is to keep assets unmoved, as replaying requires a signed transaction. He noted that while a similar issue occurred with Bitcoin Cash in 2017, BIP-110 lacks the protective mechanism implemented then. The potential split stems from a longstanding debate. It intensified after Bitcoin Core v30 increased the OP_RETURN field limit, prompting the Bitcoin Knots team to propose BIP-110, which temporarily limits non-payment data in blocks. For standard activation, it requires support from 1109 out of 2016 blocks, but currently has only about 2.6%. An alternative activation path could see nodes enforcing BIP-110 begin rejecting non-compliant blocks starting August 8th, potentially creating a separate chain if supported by miners. However, the data limit rule itself would only activate in early September. Until truly separate assets exist on each chain, transactions remain vulnerable to replay attacks between them.

cryptonews.ru08/08 15:22

Developer Warns of Risk of Losing Bitcoins Due to BIP-110

cryptonews.ru08/08 15:22

Number of Bitcoin Wallets Reaches Highest Since 2026 Amid Growing Fallout from Coldcard Hack

The number of Bitcoin wallets has reached its highest level since 2026, driven by growing concerns over the Coldcard hardware wallet exploit. Data from Santiment shows a surge in network activity, with 751,000 active wallets and 2.27 million new wallets created recently. Daily active addresses peaked at approximately 978,000 on July 31st. Notably, this increase was not accompanied by a corresponding rise in exchange inflows, which remained slightly below July's average. This divergence suggests a defensive market posture, likely due to users migrating funds from potentially compromised wallets. The vulnerability stemmed from a firmware flaw in certain Coldcard models (Mk3, Mk4, Mk5, and Q), where seed phrase generation relied on a software-based random number generator instead of the dedicated hardware entropy chip. This drastically reduced cryptographic security, leaving some devices with as little as 40 bits of real randomness. Reported losses have exceeded $116 million, with thefts continuing in waves. The data indicates that security-conscious owners of affected devices are likely creating new wallets on secure hardware and transferring their coins, explaining the spike in new and active addresses without increased trading activity. Coinkite has since released a firmware patch and a report detailing the issue. Experts emphasize this is not a Bitcoin protocol flaw but a supply-chain issue specific to one manufacturer's implementation. The incident highlights how a narrow, fixable firmware bug can significantly impact key blockchain metrics and market sentiment, amplified by coinciding discussions about unrelated Bitcoin fork proposals.

cryptonews.ru08/08 15:06

Number of Bitcoin Wallets Reaches Highest Since 2026 Amid Growing Fallout from Coldcard Hack

cryptonews.ru08/08 15:06

Cryptopolitan Report: Nearly Half of Our Readers Believe Quantum Technology Could Surpass Bitcoin by 2035

Nearly half of readers surveyed believe quantum computing could break Bitcoin by 2035. The threat lies specifically in its signature scheme (ECDSA/Schnorr), vulnerable to Shor's algorithm, which could derive private keys from public ones. Estimates suggest this could require 10,000+ qubits, a target now seen as plausible this century. Approximately 6.5-6.9 million BTC (25-33% of supply) are exposed because their public keys are already on-chain. Modern unused addresses remain safe until a transaction is broadcast. Bitcoin's response includes proposals like BIP-360 (Pay-to-Merkle-Root) to hide public keys and a multi-year transition plan. Notably, post-quantum signatures are deferred. A key development occurred when an AI model (Claude Mythos) broke the post-quantum signature scheme HAWK in days—a flaw two years of human review missed—without using a quantum computer. This highlights a new risk: AI cryptanalysis may outpace traditional verification, potentially disrupting upgrade timelines faster than quantum hardware advances.

cryptonews.ru08/08 13:53

Cryptopolitan Report: Nearly Half of Our Readers Believe Quantum Technology Could Surpass Bitcoin by 2035

cryptonews.ru08/08 13:53

Kimi K3 Detects 5,000 Security Vulnerabilities in a Day, Bitcoin Ecosystem Security in Crisis?

In a significant security scare for the Bitcoin ecosystem, a volunteer team of developers used the AI tool Kimi K3 to audit approximately 390 Bitcoin-related projects. Within just 24 hours, they identified a staggering 4,962 security vulnerabilities, including 85 critical and 635 high-severity issues, describing the overall state as "extremely bad." This audit, costing about $10,000 daily in compute power funded by OpenSats, highlights the dual-edged role of AI in both accelerating security defense and potential exploitation. The audit follows a major attack on Coldcard hardware wallets, where a five-year-old key generation flaw led to the theft of roughly 2,000 BTC (worth around $100 million) from over 5,200 addresses. The Coldcard team urgently advised users to migrate funds. Meanwhile, an address linked to the hacker, still holding an estimated $36 million, has received messages including offers for money laundering services. This situation underscores a critical security tipping point. As developers use AI to find vulnerabilities faster, attackers may leverage similar tools to exploit them, drastically shrinking the window for mitigation. With Bitcoin prices volatile and the market on edge, this large-scale AI-powered audit may signal the beginning of a broader, urgent security reckoning for the ecosystem.

marsbit08/08 12:46

Kimi K3 Detects 5,000 Security Vulnerabilities in a Day, Bitcoin Ecosystem Security in Crisis?