DotSwap V1 Hacked, Approximately 8.5 BTC Stolen
Written with artificial intelligence.
On October 25, DotSwap V1, a Bitcoin-native asset trading protocol now transitioning to On Nexus, suffered a security breach leading to the theft of about 8.5 BTC, valued at approximately $68,500. The attack exploited a vulnerability in the server-side signature path, affecting all liquidity providers in the V1 pool.
Overview of the Incident
On October 25, DotSwap V1 announced a security incident where approximately 8.5 BTC, worth around $68,500, was stolen. The protocol, which is transitioning to On Nexus, reported that the attackers utilized a vulnerability in the server-side signature path.
Impact on Users
The stolen funds were taken from the V1 liquidity pool and accounts over the course of about four hours. Since the liquidity was stored in a custodial multi-signature wallet, the losses will be borne by liquidity providers who had deposited BTC in the V1 pool. Importantly, users trading from their self-custody wallets were not affected by this breach.
Current Status
DotSwap V1 had already planned to shut down after transitioning fully to Nexus, and it is now offline. The team is actively tracking the stolen funds and collaborating with exchanges and analytical partners to investigate the incident further. A complete post-incident analysis will be released in due course.