SatoshiPay Update
Blue Star Capital plc announced that its investee company, SatoshiPay, experienced an estimated loss of US$250,000 due to a Hyperbridge protocol exploit, which involved the artificial minting of DOT tokens and subsequent swapping for ETH. SatoshiPay has reported the incident and is engaged in recovery efforts, emphasizing that its own systems were not compromised. In positive developments, SatoshiPay's Pendulum FX decentralised exchange has been integrated by major aggregators, and its Vortex platform is targeting transaction times of approximately 60 seconds for certain corridors, while its partnership with AlfredPay for North American operations is progressing with live testing underway.
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Blue Star Capital plc (AIM: BLU), the investing company with a focus on blockchain and payments, provides the following update related to its investee company SatoshiPay Ltd ("SatoshiPay").
Hyperbridge Attack
On 13 April 2026, the Hyperbridge protocol, a decentralised, interoperability coprocessor built on the Polkadot network that facilitates transfers of Polkadot's DOT token (DOT) to Ethereum (ETH), suffered a software exploitation due to a fault within its ecosystem, specifically a vulnerability in its verification logic which allowed bypassing of state-proof checks within the smart contracts.
The exploitation allowed an attacker to artificially mint approximately 1 billion bridged DOT tokens, which were subsequently swapped for ETH via SatoshiPay's ETH/DOT liquidity pools on Uniswap, across both Ethereum and Arbitrum. The total loss has been estimated by Hyperbridge at approximately US$2,500,000. Of this sum, SatoshiPay's exposure is approximately US$250,000 in aggregate, primarily reflecting the dilution of bridged DOT tokens on EVM networks and the direct loss of assets associated with the affected protocol.
Following the attack, SatoshiPay filed an official report with Action Fraud (UK) and submitted a formal notice of claim to the developers of Hyperbridge, which has publicly outlined a recovery strategy involving law enforcement and Binance compliance teams. Hyperbridge has stated that in the event that recovery efforts do not make affected users whole, it is committed to an allocation of BRIDGE tokens to cover the residual loss, structured to avoid market disruption.
SatoshiPay is also engaging with the relevant counterparties and ecosystem participants in relation to remediation and next steps, including ongoing discussions aimed at achieving an appropriate resolution for affected liquidity providers.
The Company notes that the incident arose from a vulnerability within a third-party protocol and did not result from any failure, breach or vulnerability within SatoshiPay's own systems or infrastructure. SatoshiPay has confirmed that its Pendulum and Vortex networks operated as designed throughout and that user funds within those environments remain secure. SatoshiPay removed all remaining liquidity from the affected pools in order to prevent additional losses and confirmed that there were no resultant GDPR breaches as a consequence of the attack.
SatoshiPay's participation in Hyperbridge was undertaken as part of broader ecosystem activity to support cross-chain interoperability initiatives. SatoshiPay is engaging with relevant ecosystem participants to assess outcomes and contribute to a more robust framework for risk management and infrastructure assurance.
Any further updates will be communicated to the market by the Company in due course.
Pendulum FX Launch
SatoshiPay has confirmed that its Pendulum FX decentralised exchange ("FX DEX"), deployed on the Base network, has been integrated by leading decentralised finance aggregators, including 0x and KyberSwap. These integrations are currently active and are routing user order flow to the FX DEX.
The Company notes that integration with established aggregators represents an important step in validating the FX DEX's functionality within the wider decentralised finance ecosystem and is expected to support increased liquidity utilisation and user reach over time.
In addition, SatoshiPay continues to develop its Vortex platform, with the FX DEX forming a core component of its next-generation fiat-to-crypto ramp infrastructure. Leveraging this architecture, SatoshiPay is targeting a reduction in end-to-end transaction times for certain corridors, including Brazil, to approximately 60 seconds from fiat on-ramp to delivery on the destination chain and token.
AlfredPay Launch
SatoshiPay also announces that negotiations with AlfredPay, a fintech infrastructure provider focused on cross-border payments using stablecoins, have successfully concluded.
As announced on 2 February 2026, AlfredPay will serve as a cornerstone for the North American operations of Vortex, and SatoshiPay will aim to leverage AlfredPay's infrastructure to enable broader access to stablecoin-powered payment solutions.
Live testing in a restricted production environment has been initiated to position SatoshiPay for its North American launch, with the view to target Mexico and Colombia shortly thereafter.
About SatoshiPay
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.