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Blockstream launches switching service, Boltz remains offline due to AI-assisted attacks

2026-08-11 12:49:16
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Blockstream launches a beta version of atomic swaps

Blockstream has released a public beta version of Blockstream Swaps, a service that provides atomic swaps between Bitcoin, Liquid sidechains and Lightning Network.

This product allows users to pay Lightning Network invoices directly from their Liquid Bitcoin (LBTC) balances in a self-managed manner, without the need to manage payment channels or maintain inbound liquidity.

Atomic swaps utilize smart contract technology to allow two parties to directly exchange assets without a third-party intermediary. The swap is "atomic", meaning that either both parties complete the transaction at the same time or the transaction does not occur at all, eliminating counterparty risk.

The mechanism uses a hash time-locked contract (HTLC) to ensure that swaps either complete smoothly or automatically return funds to the sender's wallet.

This time point is quite eye-catching. The service came just days after Boltz, one of the major unmanaged swap providers in the Bitcoin ecosystem, took its service offline.

Boltz shuts down after AI-assisted attack

On August 3, 2026, Boltz suspended all Bitcoin backbone, Lightning Network and Liquid swap services indefinitely, citing the fact that months of AI-assisted attacks exceeded its ability to patch.

The company said it has seen a continued increase in automated, AI-assisted detection activity targeting its infrastructure and has handled multiple exploit incidents. They added: "Every attack was contained, but the pattern was clear: Attackers are now iterating faster than a team of our size can discover and patch vulnerabilities."

Boltz said that because its swap service is non-custodial, no user funds are at risk. Its HTLC-based design protects user assets throughout the entire process, the company bears its own operating losses, and the refund API remains running.

The shutdown affects downstream wallets and services, including ZEUS, Aqua and Bull Bitcoin, which rely on Boltz's infrastructure for swaps.

This incident highlights the broader security challenges faced by small and medium-sized open source teams in the cryptocurrency space. Blockaid, a blockchain security company, reported that in the first half of 2026, encryption projects lost more than US$1 billion due to hacking, and the number of confirmed exploit incidents has exceeded the total for the whole of 2025.

TRM Labs found that in the first half of 2026, infrastructure and operational level intrusions accounted for approximately 76% of crypto-hacking losses.

Boltz has not yet given a timetable for restoring service. The company said the swap feature was disabled "until further notice" and it was impossible to predict when service would resume.

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