Threshold Network halts tBTC cross-chain functionality, says asset reserves are sufficient and no funds were lost.

BlockBeats news, November 2 - According to official sources, Threshold Network announced that tBTC minting and redemption are temporarily suspended. tBTC remains fully collateralized with no loss of funds. The cross-chain bridge wallet holds approximately 4,320 BTC, with about 4,185 tBTC in circulation, and no unauthorized minting or Bitcoin transfer records have been found. Regarding the recently disclosed Linux kernel vulnerability (CVE-2026-98432), which could allow attackers to execute code remotely on unpatched servers, all tBTC node operators have completed server patching or temporarily shut down their nodes pending a fix release. Currently, the team has found no evidence that this vulnerability has been exploited to attack tBTC nodes.

Additionally, a node operator reported today a separate security incident affecting their overall infrastructure, unrelated to the aforementioned kernel vulnerability, resulting in approximately 0.5 ETH being transferred out of the Ethereum account used by their tBTC node for paying transaction fees. At the time, the node was already offline, and the operator found no evidence of access to signing key material. Threshold Network emphasized that Bitcoin transactions in the tBTC wallet require signatures from a majority of independent operators, and a single operator cannot move funds alone. The cross-chain bridge will reopen after security maintenance is completed and nodes resume operation on patched systems. The team will publish its next progress update within 24 hours, with earlier updates if circumstances change.