Blue Star Capital (LSE:BLU) has reported that its portfolio company, SatoshiPay, was affected by a security breach linked to the Hyperbridge cross-chain protocol, resulting in an estimated exposure of around $250,000. The wider exploit, totalling approximately $2.5 million, involved the creation of fraudulent bridged DOT tokens, which were then used to extract liquidity from pools connected to SatoshiPay on Uniswap.
The company emphasised that the issue originated from a third-party vulnerability and confirmed that SatoshiPay’s own infrastructure—including its Pendulum and Vortex networks—remains secure, with no impact on user funds. SatoshiPay is now working alongside ecosystem partners and Hyperbridge to address the incident and explore potential recovery options.
Despite the disruption, Blue Star highlighted continued progress across SatoshiPay’s product ecosystem. Its Pendulum FX decentralised exchange has been integrated on the Base network by major DeFi aggregators such as 0x and KyberSwap, supporting increased liquidity and user access.
The company is also advancing its Vortex fiat-to-crypto ramp, aiming to enable near-instant settlement—around one minute—for selected payment corridors. In addition, SatoshiPay has secured a partnership with AlfredPay to support its expansion into North America, with live testing underway and an initial focus on Mexico and Colombia.
From an outlook perspective, Blue Star continues to face financial challenges, including limited or negative revenue, recurring losses, and ongoing negative cash flow. While technical indicators suggest a strong share price trend, overbought conditions introduce additional risk. Valuation remains difficult to assess due to the absence of earnings and dividend data.
More about Blue Star Capital
Blue Star Capital is an AIM-listed investment firm focused on emerging technologies, particularly in blockchain, gaming, and digital payments. Its portfolio includes stakes in companies such as SatoshiPay, Dynasty Media & Gaming, and Paidia. Through SatoshiPay, the group is developing solutions spanning fiat-to-crypto payments, decentralised finance infrastructure, and cross-border transaction systems designed to bridge traditional finance with blockchain-based ecosystems.
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