White hacker reveals LN vulnerability in Bitfinex and OKex custodial services

A member of the cryptocurrency community managed to uncover a new scheme to conduct a commission churn attack.

Lightning Network (LN)-enabled custodial services of a number of trading platforms and cryptocurrencies turned out to be vulnerable. This was reported by a Reddit user who runs a microblog under the nickname Reckless Satoshi.

The author of the post turned out to be a white hacker. After he discovered and proved the vulnerabilities, he contacted representatives of platforms that might have been victims of hacking. They included crypto exchanges Bitfinex, OKex and Southxchange, cryptocurrency wallets Muun and WalletOfSatoshi, as well as the LNMarkets platform.

According to Reckless Satoshi, he found a way to steal funds from users of custodial services projects that support transactions through LN, a layer above the blockchain.