Blockstream Steps In With Swaps Beta @Blockstream has launched a public beta of Blockstream Swaps, a service offering atomic swaps across Bitcoin, the Liquid sidechain and the Lightning Netwo
@Blockstream has launched a public beta of Blockstream Swaps, a service offering atomic swaps across Bitcoin, the Liquid sidechain and the Lightning Network. The product lets users pay Lightning invoices directly from their Liquid bitcoin (LBTC) balances in a self-custodial way, removing the need to manage payment channels or maintain inbound liquidity.
Atomic swaps use smart contract technology to allow two parties to exchange assets directly, without a third-party intermediary. The swap is atomic, meaning it either completes in full for both parties or does not happen at all, eliminating counterparty risk.The mechanism uses hash time-locked contracts (HTLCs) to ensure that swaps either complete or automatically return funds to the sender's wallet.
The timing is notable. The launch comes just days after @Boltzhq, one of the primary non-custodial swap providers for the Bitcoin ecosystem, pulled its services offline.
Boltz suspended all Bitcoin mainchain, Lightning and Liquid swap services indefinitely on August 3, 2026, citing months of AI-assisted attacks that outpaced its patching capacity.The company wrote that it had seen a steady rise in automated, AI-assisted probing of its infrastructure and had dealt with several exploits, adding: "Each was contained, but the pattern is clear: attackers now iterate faster than a team our size can find and patch."
Boltz said no user funds were at risk because its swaps are non-custodial.Its HTLC-based design protected user assets throughout, with the company absorbing operational losses on its own books, and the refund API remaining live.The shutdown affected downstream wallets and services including ZEUS, Aqua and Bull Bitcoin, all of which relied on Boltz infrastructure for swap functionality.
The incident highlights a broader security challenge facing smaller open-source teams in crypto. Blockchain security firm Blockaid reported that crypto projects lost more than $1 billion to hacks during the first half of 2026, with the number of verified exploit incidents already surpassing the total recorded in all of 2025.TRM Labs found that infrastructure and operational compromises accounted for roughly 76% of crypto hack losses in the first half of 2026.
Boltz has given no timeline for restoring its service. The company said swaps are disabled "until further notice" and that it cannot provide an estimate for when the service will return.
Sources:Boltz Shut Down Its Own Bitcoin Bridge After AI Attackers Outpaced Its Team (CoinPaprika)This Bitcoin Bridge Shut Itself Down Because AI Was Finding Bugs Too Fast (Decrypt)Bitcoin Service Shuts Down After Wave of AI Attacks (TheStreet)
